Which of the following is (are) included in investment?
(i) military spending
(ii) the purchase of an aircraft by a domestic airline
(iii) the purchase of $45,000 worth of bonds
(iv) the purchase of $32,000 worth of stock
(v) social security payments
(vi) the construction of a highway by the federal government
A)(i), (ii), (v), and (vi)
B)(ii), (iii), and (iv)
C)(ii) only
D)(i) and (vi)

Question

Quizplus · Accepted Answer

Investment in economic terms typically includes expenditures on capital goods that will be used for future production. This includes the purchase of physical assets like aircraft by businesses (ii). Military spending (i), the purchase of financial assets like bonds (iii) and stocks (iv), social security payments (v), and government spending on infrastructure like highways (vi) do not count as investment in the economic sense of forming part of a country's capital stock.

Which of the Following Is (Are) Included in Investment