Which One of the Following Would Count as Investment in the GDP

question 90

Multiple Choice

Which one of the following would count as investment in the GDP accounts?

• A) Purchase of a new airplane by an airline.
• B) Purchase of a U.S. government bond.
• C) Purchase of 100 shares of Wal-Mart stock.
• D) Purchase of an existing house.

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Definitions:

Utility

A concept in economics that refers to the total satisfaction received from consuming a good or service.

X and Y

Often used in economic models to represent variables, products, or factors that can influence outcomes in analyses.

Consuming

The act of using up goods and services to satisfy wants or needs.

Maximizing Utility

The process of choosing the allocation of scarce resources that provides the highest possible satisfaction or happiness to an individual or society.