Which of the Following Is Not Considered a Component of Investment

question 124

Multiple Choice

Which of the following is not considered a component of investment when calculating GDP?

• A)new residential construction
• B)construction of new factories
• C)net increases in inventory
• D)purchases of corporate stock
• E)production of new equipment

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Definitions:

Profit

is the financial gain made in a transaction or business operation, calculated as the difference between revenue and costs.

Collude

The act of cooperating or conspiring, especially in a deceitful way, typically between competitors to fix prices or rig markets.

Oligopolists

Oligopolists are firms in a market where a small number of competitors hold significant market share, enabling them to influence market conditions.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy at that price.