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6. Which would be considered an investment according to economists?

A) The purchase of newly-issued shares of stock in Microsoft
B) The construction of a new computer chip factory by Intel
C) The purchase of shares of stock by Fidelity, a mutual fund company
D) The sale of government bonds by the nation's central bank


Sagot :

Final answer:

Investment in economics involves activities that increase the economy's capital stock, such as constructing new factories. Purchasing financial assets like stocks is not considered investment in the economic sense.


Explanation:

Investment in economic terms refers to activities that increase the economy's stock of capital. Examples include the construction of a new computer chip factory by Intel, as it leads to the creation of new physical capital goods. On the other hand, purchasing shares of stock in a company like Microsoft does not add to the capital stock and is considered a financial investment.


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