Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)Financial investment refers to the creation and expansion of business enterprises.
• B)Economic investment refers to the creation and expansion of business enterprises.
• C)Economic investment refers to the purchase of assets such as stocks, bonds, and real estate.
• D)Both economic investment and financial investment refer to the purchase of assets such as stocks, bonds, and real estate.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Opportunity Cost

The relinquishment of possible advantages from alternate options upon making a choice.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, measured by the area above the supply curve and below the price level.