Which one of the following is an example of a ﬁnancial investment but not an economic investment?
A) renovating a shopping mall
B) constructing an addition to a petroleum reﬁnery
C) building a new store
D) buying gold to sell later at a higher price

Question

Quizplus · Accepted Answer

Buying gold to sell later at a higher price is considered a financial investment, as it involves the purchase of a commodity with the expectation of selling it at a profit, but it is not an economic investment because it does not create any new goods or services or contribute to economic growth. Renovating a shopping mall, constructing an addition to a petroleum refinery, and building a new store are all examples of economic investments because they involve the creation of new infrastructure or assets that can support economic activity.

Which One of the Following Is an Example of a ﬁNancial