The Investment Component of GDP Includes

question 40

Multiple Choice

The investment component of GDP includes

• A)residential construction investment.
• B)inventory investment.
• C)business fixed investment.
• D)Both b and c
• E)All of the above

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Definitions:

Units Received

Refers to the number of individual items or quantities of a product delivered to a recipient as part of a shipment or order.

Beginning Inventory

The worth of products ready to be sold at the beginning of a financial period.

Net Sales

The revenue generated from goods or services sold by a company after deducting returns, allowances, and discounts.

Markup

The difference between price and a seller’s cost of an item for sale. In dollars, it is the amount added to the cost of the goods in order to have a gross profit high enough to cover operating expenses and to make a net profit.