Define investment?
The meaning of investment is different for economists. Explain.

What will be an ideal response?


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.

Economics

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What is the dominant strategy for a bidder in an English auction?

What will be an ideal response?

Economics

Refer to the above table. Suppose both governments offer their respective company a subsidy of $4(million)

What will be an ideal response?

Economics

The behavior of people in government

A) can be explained or understood by applying the same principles we use to predict the behavior of people in business. B) is different from the behavior of people in business because the former aims at the general welfare rather than private welfare. C) is essentially different from market behavior. D) is not compatible with the existence of a market system. E) serves to balance private-sector behavior.

Economics

YearAntonio's Hourly wageConsumer Price Index2006$8.40201.62010$9.05218.1 Refer to Table 8.2. From 2006 to 2010, Antonio received a total of $0.65 in pay raises, and the CPI also increased as shown in the table. What was Antonio's real wage in 2010, if 2006 is used as the base year?

A. $9.05 B. $8.40 C. $8.37 D. $9.09

Economics