Diversification

question 6

Multiple Choice

Diversification:

• A) reduces the likelihood that bad things will happen.
• B) means you're not likely going to be completely ruined by a single unfortunate event.
• C) increases the likelihood that bad things will happen.
• D) None of these statements is true.

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Definitions:

Gross Domestic Product

The aggregate market or monetary value of all completed goods and services produced inside a nation's boundaries over a certain time frame.

Private Consumption

The total value of all goods and services consumed by households and individuals within an economy, excluding government spending and investments.

Gross Investment

The total amount spent on purchases of new capital assets plus replacement of worn-out or obsolete assets.

Gross National Income

The total domestic and foreign output claimed by residents of a country, including wages, salaries, and property income.