Which of the following would an economist consider to be investment?
A) Boeing building a new factory.
B) Oprah buying a $10 million home from a fellow celebrity.
C) A stockbroker buying 10,000 shares of Starbucks stock.
D) All of these.

Question

Quizplus · Accepted Answer

An economist would consider building a new factory to be investment as it involves spending money on capital goods that will increase production and generate future income.

Option B is a consumption expenditure as it involves buying a luxurious home for personal use.

Option C involves buying stocks, which is a financial instrument and therefore not considered investment from an economist's perspective.

Option D is not the correct answer, as only option A fits the definition of investment.

Which of the Following Would an Economist Consider to Be