In Computing GDP, What Is Investment

question 65

Multiple Choice

In computing GDP, what is investment?

• A) spending on stocks, bonds, and other financial assets
• B) spending on real estate and financial assets
• C) spending on new capital equipment, inventories, and structures, including new housing
• D) spending on capital equipment, inventories, and structures, excluding household purchases of new housing

Comprehend the impact of mergers and acquisitions on shareholder value and organizational growth.

Analyze the importance of due diligence and post-merger integration strategies.

Understand key legal and political events of the early 21st century.

Comprehend the impact of certain laws and court decisions on American society.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision or selection.

Comparative Advantage

The capacity of an entity to generate a product or service with a smaller opportunity cost than others.

Absolute Advantage

The capacity of an entity to manufacture a product or provide a service more effectively than its rivals, by utilizing fewer resources.

Comparative Advantage

A principle in economics that asserts a country's ability to produce a good at a lower opportunity cost compared to another country, fostering global trade efficiency.