Which of the Following Is Included in the Investment Component

question 95

Multiple Choice

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

• A)spending to build new houses
• B)spending to build new factories
• C)spending on business equipment such as welding equipment
• D)All of the above are included in the investment component of GDP.

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Definitions:

Elasticity

A measure of how much the demand or supply of a product changes in response to changes in price or other economic factors.

Dividend Payout

The portion of a company's earnings that is distributed to shareholders in the form of dividends, usually expressed as a percentage of the earnings.

Lower Volatility

Refers to the characteristic of an asset or portfolio to experience less fluctuation in price over time.

Intrinsic Value

The actual value of a company or asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.