GDP Question!?

Question

For each of the following items, write one of the following in the space provided:

C if the item is counted as consumption

I if the item is counted as investment

G if the item is counted as government

N if the item is not counted in GDP.

1)You pay $300 a month to rent an apartment.

2)You pay tuition to attend college.

3)Dell buys control of Apple

Answer 1

1)You pay $300 a month to rent an apartment.- Consumption

2)You pay tuition to attend college. - Investment if you are looking for better prospects for jobs.

It can be consumption  if the only purpose to acquire knowledge without any aim to increase in income in the future with the help of the educstion.

3)Dell buys control of Apple - N ( because the buing of controlling shares is an act of tranfsfer of controlling stake ownership from A to B and therefore does not by itself generate any GDP).

Answer 2

1). Consumption

2). Investment

3). Investment