In an Economy That Is Experiencing a Shrinking Production Capacity

question 69

Multiple Choice

In an economy that is experiencing a shrinking production capacity:

• A) Gross domestic investment is negative
• B) Net private domestic investment is zero
• C) Depreciation is negative
• D) Depreciation exceeds gross investment

---

Definitions:

Price Of Corn

The cost at which corn is bought and sold in the market, influenced by factors like demand, supply, and agricultural conditions.

Supply Of Ethanol

Refers to the total quantity of ethanol available in the market for consumption and use, influenced by production, demand, and government policies.

Farmers Plant

The act of farmers sowing seeds in order to grow crops, which is a critical step in the agricultural production process.

Decrease In Supply

A condition where less of a good or service is available than before, at a given price, usually due to changes in production costs, technology, or seller expectations.