When economists refer to "investment," they are describing a situation where
A) people are buying shares of corporate stock.
B) resources are devoted to increasing future output.
C) money is saved in a bank account.
D) ﬁnancial assets are purchased in the hope of a monetary gain.

Question

Quizplus · Accepted Answer

Investment in economics refers to the allocation of resources towards increasing future output. This can include investments in physical capital (such as machinery and equipment) or human capital (such as education and training). It is not limited to the purchase of financial assets or stocks. Saving money in a bank account may be considered a form of investment, but it does not necessarily lead to increased future output.

When Economists Refer to "Investment," They Are Describing a Situation