When opening a spa,you may need to buy tables,a sound system,and credit card processing equipment.What do economists call these expenditures?
A) capital investment
B) investment in human capital
C) business consumption expenditures
D) inventories

Question

Quizplus · Accepted Answer

These expenditures are classified as capital investment, which refers to the purchase of long-term assets used in the production of goods or services. Tables, sound systems, and credit card processing equipment are all examples of capital investments that a business may need to make when opening a spa.

When Opening a Spa,you May Need to Buy Tables,a Sound