Which would be considered an investment according to economists?
A)the purchase of government bonds by the nation's central bank
B)the purchase of a laptop by a university student to prepare her class projects
C)the construction of a new factory by Intel
D)the purchase of shares of stock by Manulife, a mutual fund company

Question

Quizplus · Accepted Answer

According to economists, investment refers to the purchase or construction of new physical assets (such as a factory) or financial assets (such as stocks or bonds) for the purpose of generating income or profit. Option A involves the purchase of bonds by the central bank, which is more of a monetary policy action than an investment. Option B involves the purchase of a laptop by a student, which is a personal consumption expenditure and not an investment. Option D involves the purchase of shares of stock by a mutual fund company, which is more of a financial transaction than an investment in the creation of new assets.

Which Would Be Considered an Investment According to Economists