The act which can be defined as Investment from an Economist point of view.

Question

Which of the following acts constitute investment according to the economist’s definition of that term? Amazon builds a new headquarters building in the United States. You buy 100 shares of Amazon stock. A department store chain goes bankrupt, and Amazon purchases its stores. Your family buys a newly constructed home from a developer. Your family buys an older home from another family. (Hint: Are any new products demanded by this action?)

Answer 1

Question

Chapter 8, Problem 2TY

To determine

To describe: The act which can be defined as Investment from an Economist point of view.

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Which of the following acts constitute investment according to the economist’s definition of that term? Amazon builds a new headquarters building in the United States. You buy 100 shares of Amazon stock. A department store chain goes bankrupt, and Amazon purchases its stores. Your family buys a newly constructed home from a developer. Your family buys an older home from another family. (Hint: Are any new products demanded by this action?)

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