(Consider This) Which of the following is an example of economic investment?
A) Volvo buys an old factory building from General Motors.
B) Nike buys a new machine that increases shoe production.
C) Bill Gates buys shares of stock in IBM.
D) Warren Buffet buys U.S. savings bonds.

Question

Quizplus · Accepted Answer

Economic investment refers to the purchase of goods and services that are expected to generate income or profits in the future. Buying a new machine that increases shoe production is an example of economic investment because it is expected to increase Nike's productivity and profitability in the future. The other choices do not necessarily fall under the definition of economic investment.

(Consider This) Which of the Following Is an Example of Economic