The Investment Demand Curve Will Shift to the Right as a Result

question 196

Multiple Choice

The investment demand curve will shift to the right as a result of

• A) an increase in the excess production capacity available in industry.
• B) an increase in business taxes.
• C) technological progress.
• D) an increase in the acquisition and maintenance cost of capital goods.

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Definitions:

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Free-Rider Problem

The inability of potential providers of an economically desirable good or service to obtain payment from those who benefit, because of nonexcludability.

Highly Profitable

Describing a business or activity that generates a significantly higher amount of earnings compared to its costs.

Private Firm

A business owned by private individuals or entities, not traded publicly and not owned by the government.