Which of the following is included in the economists definition of investment quizlet?

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Which of the following is included in the Economist definition of investment?

What Is Investment? By investment, economists mean the production of goods that will be used to produce other goods. This definition differs from the popular usage, wherein decisions to purchase stocks (see stock market) or bonds are thought of as investment. Investment is usually the result of forgoing consumption.

Which of the following is the best example of an investment as defined by economists?

Therefore, the best example of investments defined by economists is: (i) A restaurant owner buys a freezer to store ingredients for the restaurant meals as the freezer is a capital good for a restaurant owner.

Which of the following is included as investment in GDP?

In calculating GDP, investment does not refer to the purchase of stocks and bonds or the trading of financial assets. It refers to the purchase of new capital goods, that is, business equipment, new commercial real estate (such as buildings, factories, and stores), residential housing construction, and inventories.

How does investment as defined by economists differ from investment as defined by the general public quizlet?

Investment as defined by economists differs from investment as defined by the general public in that... economic investment refers to the purchase of machinery, whereas financial investment refers to the purchase of financial assets.

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