The marginal benefit from investment comes from
A) increased production and more undepreciated capital in the future period.
B) only increased production in the future period.
C) only increased undepreciated capital in the future period.
D) having more capital in the current period.
E) increases in the prices of stocks.

Question

Quizplus · Accepted Answer

The marginal benefit from investment includes both increased production and more undepreciated capital in the future period. This is because investing in capital goods can lead to increased output and productivity, as well as retaining the value of the capital for future use. Therefore, option A is correct. Option B and C are too narrow in scope as they only focus on either increased production or undepreciated capital. Option D is incorrect as it refers to the current period rather than the future period, which is the focus of investment. Option E is irrelevant as it refers to stock prices, which are not directly related to the marginal benefit of investment.

The Marginal Benefit from Investment Comes from