The Relationship Between Investment and GDP Is Shown by The

question 59

Multiple Choice

The relationship between investment and GDP is shown by the:

• A)consumption of fixed capital schedule.
• B)saving schedule.
• C)investment schedule.
• D)consumption schedule.

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Definitions:

Diminish Profits

The reduction in the amount of earnings as a result of increased costs, decreased revenue, or both.

Economic Profit

The financial difference created by subtracting total explicit and implicit expenses from total revenue in a company.

Fixed Input

A resource or factor of production whose quantity does not change with the level of output in the short run.

MRC

Marginal Resource Cost, the cost of utilizing one additional unit of a resource or factor of production.