Which of the Following Represents a Capital Expenditure

question 31

Multiple Choice

Which of the following represents a capital expenditure?

• A) issuing paychecks to workers
• B) paying for advertising on a local radio station
• C) purchasing raw materials to be used in the production of a firm's product
• D) purchasing a building to be used for office space

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Definitions:

Marginal Utility

The bonus utility or pleasure experienced by someone when consuming another unit of a given good or service.

Risk-averse

A description of an individual's or entity's preference for avoiding loss over making a gain.

Expected Income

The income an individual anticipates to earn in the future based on current circumstances, potential investments, and employment prospects.

Utility Maximizer

An economic agent who seeks to achieve the highest level of satisfaction or utility from their choices, given their constraints.