Which of the Following Is Included in the Investment Component

question 6

Multiple Choice

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

• A)households' purchases of newly constructed homes
• B)net additions to firms' inventories
• C)firms' purchases of capital equipment
• D)All of the above are correct.

Learn to determine the earnings per share and its significance in financial analysis.

Comprehend the components and calculation of cash flows from operating, investing, and financing activities.

Understand the calculation and implications of gross profit.

Grasp the concepts of equity valuation and the impact of debt and equity ratios on it.

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Definitions:

Alienation

A state of disconnection and isolation experienced by an individual or group, resulting from structural changes in society or personal relationships.

Capitalist Economy

An economic system where trade, industry, and the means of production are largely or entirely controlled by private owners for profit.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works form the basis of Marxism.

Commission

A group of individuals officially charged with a particular function or tasked with a specific project, often seen in governmental or organizational contexts.