Answer
a) Private spending for consumption are buying clothes or food, and private spending for investment would be investing in a business (and receiving ownership in the business). The resources devoted to education are a form of consumption.
Work Step by Step
b) Government spending for consumption would include healthcare programs and office supplies for government offices. Government spending for investment would include tanks for the military and construction on freeways and highways.
Healthcare for the elderly is consumption as they use more prescriptions than younger people. Healthcare for young people is an investment as society needs workers to contribute to society for quite some time.
