Which of the following is the best example of an investment as defined by economists?
A)a household's purchase of 100 shares of Apple computer stock
B)a firm's purchase of 100 shares of General Electric stock
C)a firm's purchase of a bond issued by General Mills
D)a firm's purchase of a U.S.savings bond
E)a firm buying personal computers for its secretarial staff

Question

Quizplus · Accepted Answer

Economists define investment as spending on capital goods that will be used for future production. A firm buying personal computers for its secretarial staff is an investment in capital goods.

Which of the Following Is the Best Example of an Investment