Asked by Wendy Bartley on Jul 30, 2024
Verified
Which of these is an investment as counted in GDP?
A) The purchase of McDonnell-Douglas by Boeing.
B) The purchase of NBC by General Electric.
C) An increase in inventory by IBM.
D) All the choices.
Inventory
The total amount of goods or materials held by a business, intended for sale or used in production.
GDP
Sum total of the monetary or market valuation of all end-stage goods and services manufactured within a nation's boundaries during a predetermined period is known as the Gross Domestic Product.
IBM
A multinational technology and consulting company known for its hardware, software, and services in computing.
- Acquire knowledge on the subject of investment within the context of economics, focusing on net and gross investment.
Verified Answer
JK
James KibaaraJul 31, 2024
Final Answer :
C
Explanation :
An increase in inventory by IBM counts as an investment in GDP as it reflects a firm's production of goods that will be sold in the future. The purchase of other companies (choices A and B) does not count as investment in GDP because it reflects a transfer of ownership rather than the production of new goods or services.
Learning Objectives
- Acquire knowledge on the subject of investment within the context of economics, focusing on net and gross investment.