Which of the Following Relationships Is Correct

question 96

Multiple Choice

Which of the following relationships is correct?

• A)Gross Investment = Net Investment + Depreciation
• B)Depreciation = Gross Investment - Consumption expenditure
• C)Consumption expenditure = Net Investment - Depreciation
• D)Net Investment = Gross Investment + Depreciation
• E)Saving = Gross Investment - Taxes

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Definitions:

Constant Returns

A situation in economics where increasing the scale of production does not affect the long-run average cost of production, implying it remains constant.

Initial Plant Sizes

The original capacity or scale of a facility when it first begins operations.

Purely Competitive

Characterizes a theoretical market structure emphasizing perfect competition, where numerous small firms face no barriers to entering or exiting the market.

Long Run

A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.