In Which of Following Examples Does Increased Investment NOT Occur

question 14

Multiple Choice

In which of following examples does increased investment NOT occur?

• A)The level and rate of change of profits increases.
• B)Businesses decide to proceed with an investment on the basis of increases in income or output.
• C)Business taxes are increased.
• D)Investors become more optimistic in their expectations toward the future.

---

Definitions:

Supply and Demand

The economic model that determines the price of an item in a market, based on the quantity of the good that producers wish to sell at various prices and the quantity that consumers wish to buy.

Perfectly Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information where no single buyer or seller can influence the market price.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a homogeneous product, ensuring no single entity can dictate the market price.

Monopolists

Firms or individuals that are the sole providers of a particular good or service, giving them significant market power.