Which of the Following Expenditures Is Not Included in Fixed

question 12

Multiple Choice

Which of the following expenditures is not included in fixed investment spending (I) ?

• A) Ford increases its inventories of unsold automobiles.
• B) Dell Computer buys a new robot for its assembly line.
• C) Holden builds a new factory.
• D) An individual buys a newly built home.
• E) All of the above.

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Definitions:

Tax

Tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Software Package

A bundle of software components or programs that are designed to work together to perform a specific function or set of functions.

Cost Plus Pricing

A pricing strategy where the selling price of a product is determined by adding a specific markup to its production cost.

Monopoly

A market condition where a single company or entity has exclusive control over a particular good or service, limiting competition.