Over Time, Changes in Investment

question 41

Multiple Choice

Over time, changes in investment
I. shift a nation's production possibilities curve outward.
II. shift the long-run aggregate supply curve to the right.
III. shift the short-run aggregate supply curve to the right.
IV. contribute to economic growth.

• A) I and IV only
• B) II and IV only
• C) I, II, and IV only
• D) I, II, III, and IV

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Definitions:

Investment Center

A segment or area of a business responsible for its own revenue, expenses, and assets, and its performance is measured by its return on investment.

Fixed Expenses

These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.

Residual Income

The amount of income that an entity has after all costs and expenses, including the cost of capital, have been deducted.