Which of the Following Is True of Investment Spending in the U.S

question 13

Multiple Choice

Which of the following is true of investment spending in the U.S. economy?

• A)Investment spending in 2009 was higher than in 2006.
• B)Investment spending was almost double of household spending.
• C)Businesses had reduced expenditures on capital goods in 2008 and 2009.
• D)Investment spending exhibited a more or less steady increase between 1959 and 2009.
• E)Investment spending fluctuated relatively less than consumption.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.

Purely Competitive Firm

A business that operates in a market with infinite buyers and sellers, no barriers to entry, and a standard product, leaving the company as a price taker.

Unitary Elasticity

A situation in economics when a change in the price of a product leads to an equal proportionate change in the quantity demanded or supplied.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept for determining the optimal level of output for a company.