Which of the Following Will Be Counted as an Investment

question 84

Multiple Choice

Which of the following will be counted as an investment expenditure in the measurement of GDP?

• A)purchase of a tractor by a farmer from his neighbor
• B)purchase of preferred stock in ABC Corporation
• C)purchase of a newly built tractor by a college fraternity for hay rides at their charity fair
• D)purchase of an apartment in a newly-built building
• E)purchase of newly built computers by a municipal government

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Definitions:

Lowballing

A phenomenon in which after agreeing to an offer, people find it hard to break that commitment even if they later learn of some extra cost to the deal.

Implicit Pressure

An unspoken or indirect force that influences individuals to act or think in a certain way, often stemming from societal or cultural expectations.

Minority Opinions

Views or beliefs held by a small segment of a community or group, which can differ significantly from the majority consensus.

Informational Influence

The effect of information or knowledge from others on an individual's attitudes, opinions, or behaviors.