Net Investment Is

question 102

Multiple Choice

Net investment is

• A) what is left over from total new private investment after depreciation.
• B) the total amount of private investment purchases, whether new or previously existing.
• C) the total amount of new private investment purchases.
• D) gross investment plus depreciation.

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Definitions:

Identical Good

A product that is uniform in quality and features across different producers, making it indistinguishable between sources.

Marginal Cost

The charges incurred for the production of an additional unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved due to market inefficiencies.

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.