An Example of "Investment" in Computing Real GDP Using the Expenditure

question 357

Multiple Choice

An example of "investment" in computing real GDP using the expenditure approach is the purchase of

• A) a new set of tools by an auto mechanic, for use in repairing cars.
• B) 100 shares of IBM stock.
• C) a 100 year old house by a married couple.
• D) computer chips by Dell to put in their personal computers.

---

Definitions:

Credit Clause

This term does not directly correspond to a widely recognized legal or constitutional provision as described, but it might be confused with the Full Faith and Credit Clause, which requires states to respect the public acts, records, and judicial proceedings of other states.

Civil Acts

Laws enacted to guarantee and protect the civil rights of citizens.

Judicial Decisions

Rulings and opinions issued by courts in the legal process, which interpret laws, settle disputes, and establish precedents for future cases.

UN Security Council

One of the six principal organs of the United Nations, responsible for maintaining international peace and security, with the power to make decisions that member states must implement.