Which of the following is an act of economic "investment"?
A) The state legislature authorizes the sale of a state park.
B) An entrepreneur buys 5,000 shares of stock at $5 a share and then sells the stock at a profit for $60 a share.
C) A brewer purchases a new fermentation system for his beer.
D) A teacher deposits $500 in a retirement account.

Question

Quizplus · Accepted Answer

Investment, in economic terms, refers to the purchase of goods that are not consumed today but are used in the future to create wealth. In this context, a brewer purchasing a new fermentation system for his beer represents an economic investment because it is a purchase of capital goods intended to increase future production capacity.

Which of the Following Is an Act of Economic "Investment