When opening a restaurant, you may need to buy tables, an oven, and credit card processing equipment. What do economists call these expenditures?
A) capital investment
B) investment in human capital
C) business consumption expenditures
D) savings depletion

Question

Quizplus · Accepted Answer

These types of expenditures are considered capital investment, which refers to the purchase of goods and services that are used to produce other goods and services. In this case, the tables, oven, and credit card processing equipment are all necessary for the restaurant to function and produce its product (food), making them a form of capital investment.

When Opening a Restaurant, You May Need to Buy Tables