Question 15 1 pts Which of the following counts as investmen

Question 15 1 pts Which of the following counts as investment? You buya stock. O You buy a computer to use for fun at home You buy a new house. All of these choices are correct. DQuestion 16 1 pts Which of the following does NOT increase the US. GDP? O The U.S. government purchases a tank from a O The US. government increases social security O The U.S. government increases funding for tax The French government purchases a tank from U.S. compamy payments policy at a U.S. university. a U.S-based company. D Question 17 1 pts Which of the following is NOT an example of capital? O Machines at an automobile factory An automobile factory building O Screws and bolts used for maiking cars at an automobile factory O A plant managers computer

Solution

15. Investment means an expectation of benefit in future. Buying stock is an investment as the stock will earn interest in future. So the first option is correct.

16. GDP is the total value of goods and services produced within the country in a given period of time. GDP=Cnsumption+Government expenditure+Invesment+Net export. When a French government purchases US tank, government expenditure in French will be increased. In the US FDI will be increased. So the fourth option is correct.

17. Capital means the financial asset. It includes facilities such as building for production, storage of manufacturing goods. Screw and bolts have no financial value itself. The third option is correct.