Which of the Following Is an Example of the Gross

question 95

Multiple Choice

Which of the following is an example of the gross private domestic investment component of Gross Domestic Product (GDP) ?

• A) You buy a share of GM stock.
• B) GM buys a new drill press.
• C) You put money into your savings account.
• D) You put money into your checking account.

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Definitions:

Long-Run Equilibrium

A state where there is no tendency for economic variables, such as prices, outputs, or employment, to change, because all agents in the economy have fully adjusted to any changes.

Efficient Scale

The level of production at which a firm can produce its goods at the lowest average cost, optimizing resource use.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations.

Short-Run Equilibrium

A state in which market supply and demand balance out at a particular price level, resulting in an unchanging economic situation.