When Is Net Investment Equal to Investment

question 99

Multiple Choice

When is net investment equal to investment?

• A) never
• B) only if depreciation is zero
• C) always
• D) if the economy is in a steady state
• E) whenever the economy is not in a steady state

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Definitions:

Privately Owned

Refers to properties, businesses, or assets that are owned by individuals or private companies and not by the state or public entities.

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.

Centralized Planning

A system of economy where all choices related to the creation and allocation of goods and services are made by a central governmental body.

Competitive Markets

Markets where many buyers and sellers trade goods and services under conditions of few restrictions, leading to the best prices for both parties.