The Difference Between Gross Investment and Net Investment Is

question 164

Multiple Choice

The difference between gross investment and net investment is

• A) inflation.
• B) depreciation.
• C) initial capital.
• D) consumption.

---

Definitions:

Price Received

The amount of money paid to a producer or seller for a product or service.

Production Function

A mathematical model describing the relationship between input factors (like labor and capital) and output, indicating how much can be produced with given resources.

Supply Function

A mathematical relation showing the quantity of a good that producers are willing and able to sell at different prices, holding other factors constant.

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital.