Which of the following would not be included as part of investment?
A) A new house just constructed for a family moving from their old house down the street and around the corner
B) A quantity of money used to purchase some IBM stock from a broker in anticipation that IBM will expand its capacity for producing personal computers
C) The purchase by United Technologies Corporation of a set of IBM computers for its executives
D) The construction of a new plant by IBM in Kingston, New York
E) None of the above

Question

Quizplus · Accepted Answer

Investment, in economic terms, refers to the purchase of goods that are not consumed today but are used in the future to create wealth. Buying IBM stock is considered a financial investment rather than an economic investment, which involves the acquisition of physical assets like machinery, buildings, or equipment. Choices A, C, and D involve the acquisition of physical assets or property, thus are considered part of economic investment.

Which of the Following Would Not Be Included as Part