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:

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.

Optimal Short-Run Output

The level of production that maximizes profit or minimizes loss in the short term.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.

Downward-Sloping Demand Curves

A graphical representation indicating that as the price of a good or service decreases, the quantity demanded increases, and vice versa.