Which of the following is not considered investment in the national income accounts?
A)The purchase of a drill press by XYZ company.
B)Construction of a new housing project.
C)The accumulation of inventories on a grocer's shelves.
D)The purchase of 1000 shares of IBM stock.

Question

Which of the following is not considered investment in the national income accounts?
A)​The purchase of a drill press by XYZ company.
B)​Construction of a new housing project.
C)​The accumulation of inventories on a grocer's shelves.
D)​The purchase of 1000 shares of IBM stock.

Quizplus · Accepted Answer

The purchase of stock is not considered investment in the national income accounts because it does not contribute directly to the production of goods and services. It is instead seen as a transfer of ownership of existing assets. A, B, and C are all examples of investment as they all involve the purchase or creation of physical capital which can be used in the production process.

Which of the Following Is Not Considered Investment in the National