a. Economists referring to investment mean the: O purchase of financial assets within an economy. O purchase of financial and physical assets within an economy. O formation of new productive capital within an economy. development of new technologies to increase productivity. *
a. Economists referring to investment mean the: O purchase of financial assets within an economy. O purchase of financial and physical assets within an economy. O formation of new productive capital within an economy. development of new technologies to increase productivity. *
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:a. Economists referring to investment mean the:
O purchase of financial assets within an economy.
O purchase of financial and physical assets within an economy.
O formation of new productive capital within an economy.
O development of new technologies to increase productivity. O
b. Investment is used to buy:
O goods and services that will enhance productivity and increase output.
O services, but not goods, that will enhance productivity and increase output.
O goods, but not services, that will enhance productivity and increase output.
c. Determine whether the following transactions are included in gross investment.
i. New residential hòusing: Included in gross investment
ii. Changes in inventories: Included in gross investment O
iii. Changes in depreciation: Included in gross investment
iv. Purchase new shares of a company: Included in gross investment x
v. Firms purchasing new capital: | Included in grøss investment
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