Which of the following would an economist consider to be investment?
A) Boeing builds a new factory
B) Oprah buys a $10 million home from a fellow celebrity
C) a stockbroker buys 10,000 shares of Starbucks stock
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

An economist would consider investment as the creation or acquisition of physical assets such as buildings, machinery, and equipment that are used to produce goods or services. Therefore, Boeing building a new factory would be considered an investment. Oprah buying a $10 million home and a stockbroker buying shares of Starbucks stock are not investments in the economic sense.

Which of the Following Would an Economist Consider to Be