ECONOMICS (CBSE/UGC NET)

ECONOMICS

GDP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories
A
Exports of goods and services
B
Real GDP
C
Investment
D
Net exports of goods and services
Explanation: 

Detailed explanation-1: -Investment spending may include purchases such as machinery, land, production inputs, or infrastructure. Investment spending should not be confused with investment, which refers to the purchase of financial instruments such as stocks, bonds, and derivatives.

Detailed explanation-2: -Investment is spending on capital equipment, inventories and structures including new housing. Investment does not include spending on stocks and bonds. Government purchases is spending on goods and services by all levels of government (federal, state and local).

Detailed explanation-3: -Investment expenditure concerns capital operations. It includes : the repayment of loans; loans and advances granted by the authority; direct investment expenditure (equipment and real estate acquisitions, new work, major repairs);

Detailed explanation-4: -In GDP accounting, investment means purchases of investment goods such as capital equipment, inventories, or structures.

There is 1 question to complete.