Over Time, Changes in Investment

question 41

Multiple Choice

Over time, changes in investment
I. shift a nation's production possibilities curve outward.
II. shift the long-run aggregate supply curve to the right.
III. shift the short-run aggregate supply curve to the right.
IV. contribute to economic growth.

• A) I and IV only
• B) II and IV only
• C) I, II, and IV only
• D) I, II, III, and IV

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Definitions:

Indirect Cost

Indirect costs are expenses not directly tied to the production of goods or services, such as overhead costs including utilities, rent, and administrative salaries.

Oil Lubricants

Substances used to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Factory Machinery

Tools and equipment designed for use in the manufacturing process within a factory to produce goods and products.

Rent Expense

The cost incurred for renting property or equipment used in business operations, recognized as an expense on the income statement.