Which of the Following Is Included in the Investment Component

question 105

Multiple Choice

Which of the following is included in the investment component of GDP?

• A)spending on new residential construction and spending on stocks and bonds
• B)spending on new residential construction but not spending on stocks and bonds
• C)spending on stocks and bonds but not spending on new residential construction
• D)neither spending on stocks and bonds nor spending on new residential construction

---

Definitions:

Price Elasticity

A quantitative representation of how quantity demanded or supplied of a product changes in response to a price change, signifying the sensitivity of consumers or producers to price variations.

Marginal Cost

The incremental cost of creating one more unit of a good or service.

Profit-Maximizing

Profit-maximizing refers to the strategy or point where a company achieves the highest possible profit from its operations, after accounting for all costs.

Marginal Revenue Function

A mathematical representation showing how revenue changes as the quantity of goods sold varies.