During Canada's Three Last Recessions, Investment Spending Accounted for What

question 108

Multiple Choice

During Canada's three last recessions, investment spending accounted for what percentage of the decline in GDP?

• A) 20 percent
• B) 40 percent
• C) 60 percent
• D) 80 percent

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Definitions:

Opportunity Cost

Opportunity cost represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding other inputs constant.

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Profit-Maximizing

A strategy or process by which a business seeks to generate the highest possible profit from its operations.