Question : Which of the following is a component of investment expenditure?
Option 1: Consumption
Option 2: Government expenditure
Option 3: Net exports
Option 4: Business fixed investment
Correct Answer: Business fixed investment
Solution : The correct answer is (d) Business fixed investment.
Investment expenditure refers to spending on capital goods, such as machinery, equipment, and structures, with the purpose of increasing productive capacity or generating future economic benefits. It is one of the components of GDP (Gross Domestic Product) and represents the investment made by businesses in expanding their operations or replacing existing capital.
Business fixed investment is a component of investment expenditure. It includes the spending by businesses on fixed assets, such as machinery, buildings, vehicles, and equipment, which are used in the production process.
