How is investment defined as an economic concept?
A. Investment is primarily the sum of expenditures by businesses on new capital goods that will yield a future stream of income.
B. Investment is primarily the market value of all equipment, buildings, and inventories held by corporations, partnerships, and proprietorships.
C. Investment is primarily the market value of all shares of stock held by the public.
D. Investment is primarily the portion of your savings held in an interest-earning account.
Answer: A
You might also like to view...
According to the law of diminishing returns
A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above
Human capital is:
A. the factories and machinery made by workers. B. the talents, training, and education of workers. C. the factories and machinery used by humans in the production process. D. the financial resources available to humans for investment.
Analysis that aims at determining only the economic consequences of a particular policy is called ________ analysis.
A. fiscal B. normative C. monetary D. positive
The long run refers to a time period
A) long enough for a firm to pay all of its creditors in full. B) long enough for a firm to change the use of its variable inputs. C) long enough for a firm to vary all of its inputs, to adopt new technology, and change the size of its physical plant. D) during which a firm is able to purchase all of its inputs, including its plant and equipment.