Question

Engineering Economics

1. Which component of GDP will be affected by each of the following transactions involving the Ford Motor Company? If you believe that none of the components of GDP will be affected by the transactions, briefly explain why.

b. You purchase a 2008 Ford Escape Hybrid from a friend

c. Ford purchases door handles to be installed later on the doors of new Escapes from an auto parts manufacturer in Indiana.

d. Ford purchases 1,000 Escapes in a factory in Missouri and ships them to a car dealer in Shanghai, China.

e. Ford purchases new machine tools to use in its Missouri Escape factory

f. The state of Missouri builds a new highway to help improve access to the Ford Escape plant


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