Which of the Following Is Included in the Investment Component

question 5

Multiple Choice

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

• A)spending on new business equipment such as power tools and spending on stocks and bonds
• B)spending on new business equipment such as power tools but not spending on stocks and bonds
• C)spending on stocks and bonds but not spending on new business equipment such as power tools
• D)neither spending on new business equipment such as power tools nor spending on stocks and bonds

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Definitions:

Total Cost

The complete cost of producing, storing, and delivering a product to the end user.

Optimal Number

The most favorable quantity that balances costs and benefits in a given situation, often used in inventory management and resource allocation.

Integer-Multiple

A value that is an integral (whole) number times of a particular number, indicating a multiplicative relationship.

Fixed Cost

Expenses that do not change with the level of goods or services produced by the business, such as rent for a building.