Which of the Following Is Included as Investment in GDP

question 60

Multiple Choice

Which of the following is included as investment in GDP?
i. Cars produced during the year but unsold at the end of the year.
Ii New capital equipment produced and purchased during the year.
iii. Purchases of a company's shares and bonds.

• A) i and ii
• B) i, ii and iii
• C) iii only
• D) i only
• E) ii only

---

Definitions:

Surplus

In economic terms, a situation where the quantity of a good or service available exceeds the quantity demanded at a specific price.

Binding Price Floor

A government or regulatory-imposed price control set above the equilibrium price, which prevents the market price from falling below that level.

Potential Sellers

Potential sellers are individuals or entities that may be willing to sell goods or services under the right conditions.

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.