Which of the following is not considered investment?
A) the acquisition of capital goods
B) the purchase of government bonds
C) the increase in planned inventories
D) the construction of a new factory

Question

Quizplus · Accepted Answer

Investment, in economic terms, typically refers to the purchase of goods that are not consumed today but are used in the future to create wealth. This includes the acquisition of capital goods (like machinery), the construction of a factory, and increases in inventory levels. The purchase of government bonds is considered a financial investment rather than an economic investment, as it does not directly contribute to the production of goods and services.

Which of the Following Is Not Considered Investment