Define investment? The meaning of investment is different for economists. Explain
Investment is an asset or item that is purchased with the hope that it would generate income or appreciate in the future.
For an economist, investments are the sum of the expenditures of business enterprises on new factories, machines and individuals on new homes. Financial investments and the resale of existing physical assets are not included in the economist's definition. In finance, an investment is a monetary asset purchased with the idea that the asset will provide a flow of income in the future in the form of profit or interest or gain on capital.
You might also like to view...
The government can raise tax revenue and increase total economic surplus by taxing:
A. goods that generate positive externalities. B. goods whose supply and demand curves are highly elastic. C. luxury goods that are primarily consumed by wealthy individuals. D. goods that generate negative externalities.
A World Bank study found that charging user fees for medical treatment in developing countries
A. slightly increased treatment rates. B. greatly increased treatment rates. C. dramatically reduced treatment rates. D. had no significant effect on treatment rates.
Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2 billion when the reserve requirement is 25%. If the reserve requirement is then lowered to 20%, we can conclude that the ________.
A. banking system now has excess reserves of $3 billion B. Fed has decided that money supply needed to be reduced C. monetary multiplier has decreased D. maximum money-creating potential of the banking system has been increased by $7 billion
Trish grows oregano in her backyard to use in her homemade pesto sauce. How is this gardening included in GDP?
A. It is included in real GDP. B. It is included in nominal GDP. C. It is not included in GDP. D. It is included as an intermediate good.