Suppose Gross Capital Formation as a Percentage of GDP Is

question 46

Multiple Choice

Suppose gross capital formation as a percentage of GDP is low but the economic growth rate is high. Which of the following can be inferred about the economy from this information?

• A) The services sector forms a large proportion of the GDP of the economy.
• B) The level of private sector investment in assets like buildings, factories and equipment is
• C) The proportion of output that is used for renewal of existing capital is likely to be low.
• D) The manufacturing sector forms a large proportion of the GDP of the economy.

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Definitions:

Ketogenesis

A metabolic process where the liver produces ketone bodies from fatty acids, which serve as an alternative energy source when glucose is low.

Acetyl CoA

A molecule involved in many biochemical reactions, serving as a key intermediary in the synthesis and oxidation of fatty acids and in the Krebs cycle for energy production.

Electron Transport

A series of chemical reactions during which electrons are transferred through a chain of protein complexes in the mitochondria, generating ATP, the cell's energy currency.

Transamination

A biochemical process that transfers an amino group from an amino acid to a keto acid, altering amino acid structure.