If Unplanned Business Investment Is $20 Million and Planned Investment

question 172

Multiple Choice

If unplanned business investment is $20 million and planned investment is $20 million, then actual investment is

• A) -$20 million.
• B) $20 million.
• C) $40 million.
• D) $200 million.

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Definitions:

Marginal Benefits

The additional satisfaction or value that one receives from consuming or producing one more unit of a good or service.

Production Possibilities

A curve or frontier that shows various combinations of the amounts of two goods or services that can be produced within the limits of available resources and technology.

Specialization

The process or strategy of focusing on a narrow area of expertise or production to gain efficiency or quality in the output.

Production Possibilities Curve

A graphical representation of the maximum goods and services that a society can produce, given its productive resources and technology.