Gross Private Domestic Investment Is a Component of Which Approach

question 277

Multiple Choice

Gross private domestic investment is a component of which approach to measuring GDP?

• A) incomes approach
• B) output approach
• C) expenditure approach
• D) linking approach

---

Definitions:

Initial Outlay

The initial investment amount or initial cost incurred in starting a project, purchasing an asset, or initiating an investment.

Incremental Cash Flows

The additional cash flow generated by a company from undertaking a particular project or investment.

New Venture

Refers to a newly established business entity created with the intention of entering a market.

Opportunity Cost

The financial loss involved in not selecting the subsequent top preference during the decision-making process.