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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is investment expenditure?
💡 Hint: Think about what businesses buy to help them produce.
Question 2
Easy
Give two examples of capital goods.
💡 Hint: Consider what is necessary for manufacturing.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What type of spending does investment expenditure refer to?
- Government purchases
- Household spending
- Business spending on capital goods
💡 Hint: Focus on who spends money on resources for production.
Question 2
Is investment expenditure relevant for GDP calculations?
- True
- False
💡 Hint: Consider if investment by businesses contributes to overall economic output.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Evaluate a scenario where a company drastically increases its investment expenditure amidst economic uncertainty. What are the possible short-term and long-term effects on the economy?
💡 Hint: Consider how fluctuations in demand might impact business operations.
Question 2
Formulate a policy recommendation for a government looking to boost investment expenditure in a recession. What specific measures should be taken?
💡 Hint: Focus on ways to make it more attractive for businesses to invest during challenging economic times.
Challenge and get performance evaluation