Which of the Following Relationships Is Correct

question 281

Multiple Choice

Which of the following relationships is correct?

• A) Net Investment = Gross Investment + Depreciation
• B) Consumption expenditure = Net Investment - Depreciation
• C) Gross Investment = Net Investment + Depreciation
• D) Depreciation = Gross Investment - Consumption expenditure

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling beneficial trade.

Absolute Advantage

The capacity of a nation, individual, organization, or area to generate a product or offer a service at a cost per unit that is less than what any other party can produce that same good or service for.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one option over another.

Bushel

A measure of volume that is used primarily in agriculture, equal to about 35.24 liters in the USA.