A Firm Has a Total of 25 Workstations in Four

question 125

Multiple Choice

A firm has a total of 25 workstations in four different office buildings.This year it builds 3 new workstations and gets rid of 5 old ones.In this case,investment is equal to ________ and net investment is equal to ________.

• A) 3; 5
• B) 3; -2
• C) 3; 2
• D) 5; 3
• E) 2; -2

---

Definitions:

Defense Expenditures

The amount of funding allocated by a nation for its military forces and activities, including salaries, equipment, research, and development.

Automatic Stabilizers

Economic policies and programs that automatically adjust to temper the fluctuations in an economy, such as unemployment insurance and progressive taxes.

Annual Deficit

The shortfall that occurs when a government's expenditures exceed its revenues within a one-year period.

Economy Contracting

A phase where there is a decrease in the level of economic activity within a country, often indicated by a reduction in spending, investment, and GDP growth.