Which of the following does not constitute an act of "investment" as economists use the term?
A. An accountant attends a seminar on changes in the federal tax code.
B. The city council authorizes the construction of a new fire station.
C. A department store increases its inventory of football jerseys before the Super Bowl.
D. A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
Answer: D
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If the price of x falls, the budget constraint:
a. shifts outward in a parallel fashion. b. shifts inward in a parallel fashion. c. rotates outward about the x-intercept. d. rotates outward about the y-intercept.
If a decrease in prices increases total revenue for a product in the short run, in the long run, it will: a. Increase total revenue by more
b. Increase total revenue by less. c. Decrease total revenue. d. Either b. or c. could result in the long run.
If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is: a. rivalrous and excludable
b. non-rivalrous and excludable. c. rivalrous and non-excludable. d. non-rivalrous and non-excludable.
In Latavia, cultural pressures cause voluntary donations to orphanages to be very large; in Slobovia, people make smaller donations. If the governments of both countries suddenly grant a tax break to those donating money to orphanages, the basic postulate of economics predicts that donations
What will be an ideal response?