Practice Investment Expenditure (2.2.2) - Chapter 6: National Income - ICSE 12 Economics

Practice: Investment Expenditure

Lesson 2.2.2National Income

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8 questions

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2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is investment expenditure?
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Think about what businesses buy to help them produce.
Question 2.
Give two examples of capital goods.
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Consider what is necessary for manufacturing.
3Question 3.
What type of spending does investment expenditure refer to?
- Government purchases
- Household spending
- Business spending on capital goods
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Focus on who spends money on resources for production.
4Question 4.
Is investment expenditure relevant for GDP calculations?
- True
- False
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Consider if investment by businesses contributes to overall economic output.
Question 5.
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?
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Consider how fluctuations in demand might impact business operations.
Question 6.
Formulate a policy recommendation for a government looking to boost investment expenditure in a recession. What specific measures should be taken?
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Focus on ways to make it more attractive for businesses to invest during challenging economic times.

4 more questions in this section. Enroll free to practise them all.