Which of the Following Is Included as Investment in GDP

question 60

Multiple Choice

Which of the following is included as investment in GDP?
i. Cars produced during the year but unsold at the end of the year.
Ii New capital equipment produced and purchased during the year.
iii. Purchases of a company's shares and bonds.

• A) i and ii
• B) i, ii and iii
• C) iii only
• D) i only
• E) ii only

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible or physical asset over its useful life, reflecting the decrease in value over time.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and profits.

Variable Costs

Expenses that vary in relation to the amount of production or the scale of business operations.

Fixed Costs

Expenses such as rent, salaries, and insurance that remain constant regardless of the amount of production or sales.