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

question 25

Multiple Choice

Which one of the following would count as investment in the national income 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:

Unit Selling Price

The price at which a single unit of a product is sold to customers, not including any additional fees or taxes.

Variable Costs

Expenditures that fluctuate in alignment with production levels or sales figures.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue is contributing to fixed costs and profit.

Margin Ratio

A financial metric that compares a company's gross profit margin to its revenue, indicating the percentage of sales revenue that remains after accounting for the cost of goods sold.