The Process of Moving Investments Between Sectors of the Economy

question 13

Multiple Choice

The process of moving investments between sectors of the economy over time is called ________.

• A)sector stagnation
• B)sector selection
• C)rotational investing
• D)sector exchange
• E)sector swapping

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or physical factors of production.

Production Functions

A mathematical relationship that describes how input factors such as labor and capital are converted into output or goods and services.

Substitute

A good or service that can be used in place of another good or service, often because they share similar characteristics or fulfill similar needs.

Returns To Scale

Describes how output changes in response to a proportional change in all input factors used in production.