Which of the following does NOT constitute an act of "investment" as economists use the term?
A) The city council authorizes the construction of a new fire station.
B) A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
C) An accountant attends a seminar on changes in the federal tax code.
D) A department store increases its inventory of football jerseys before the Super Bowl.

Question

Quizplus · Accepted Answer

Buying and selling stocks is considered a financial transaction, not an investment in the economic sense, which typically involves the purchase of goods that will be used to produce other goods or services in the future.

Which of the Following Does NOT Constitute an Act of "Investment