Which of the Following Would Count as an Investment Expenditure

question 44

Multiple Choice

Which of the following would count as an investment expenditure in the GDP expenditures approach?

• A) General Motors hires 10 electrical engineers.
• B) Boeing purchases a new metal stretching machine used to produce airplane wings.
• C) Ms. Quantum buys 100 shares of Microsoft stock.
• D) A large corporation spends $10,000 per month on long-distance phone charges.

---

Definitions:

Short-Term Note

A debt instrument or loan with a maturity of less than one year, often used for immediate financing needs.

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for stock splits, dividends, and return of capital distributions.

Transportation Costs

Expenses associated with the movement of goods or people from one place to another.

Special Acquisition Fees

Charges associated with acquiring new assets, businesses, or securities, often including legal fees, consulting fees, administrative costs, and other miscellaneous expenses.