Which of the Following Items Is Included in Gross Private

question 77

Multiple Choice

Which of the following items is included in gross private domestic investment?

• A)an increase in the level of government spending on new schools
• B)the purchase of medical equipment by the Marines for use in its field hospitals
• C)an increase in business inventories
• D)an increase in the value of corporate stocks sold during the year

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Definitions:

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level of a business.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs, attributable to variations in production volume.