Which of the Following Would Be Included as Investment in the GDP

question 75

Multiple Choice

Which of the following would be included as investment in the GDP accounts?

• A)the government buys goods from another country
• B)someone buys stock in an American company
• C)a firm increases its capital stock
• D)All of the above are correct.

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Definitions:

Production Activities

Production activities refer to the processes involved in creating goods or services, including manufacturing, assembly, and quality control.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products.

Allocation Basis

A method or principle used to distribute costs or revenues among various accounts or periods.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar items in inventory, weighted by the quantity of each item.