Which of the following is the best example of economic investment?
A) Apple builds a new plant to manufacture iPads.
B) Your college purchases a 5-year-old building in order to have more classrooms.
C) A retiree purchases U.S. government bonds.
D) A company, like Bank of America, acquires another company, like Merrill Lynch.

Question

Quizplus · Accepted Answer

Economic investment involves the purchase or creation of goods, such as factories or equipment, that increase productivity and potentially generate profit. Apple building a new plant to manufacture iPads fits this definition. The other options involve purchases or acquisitions that may not directly lead to increased productivity or profit.

Which of the Following Is the Best Example of Economic