Which of these is an example of an economic investment?
A) building a new sales force training facility
B) putting funds in a certificate of deposit
C) purchasing a share of Google stock
D) trading a bond certificate

Question

Quizplus · Accepted Answer

Building a new sales force training facility is an example of an economic investment because it involves investing resources (such as money, time, and labor) to create a long-term asset that is expected to generate future returns. Choices B, C, and D are not economic investments because they do not involve creating new physical or intellectual assets that can generate future returns. Instead, they are financial transactions that involve buying or selling existing financial instruments (such as certificates of deposit, stocks, and bonds) that represent claims to future cash flows.

Which of These Is an Example of an Economic Investment