Asked by Veronica Krall on Jun 29, 2024

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Investment,as the term is used in economics,does NOT include

A) General Motors' purchase of a new IBM mainframe computer.
B) an annual increase in the inventory of canned peas at Brown's Corner Grocery.
C) the purchase of a parcel of land in order to realize future financial gains when the land is sold.
D) the purchase of two new Boeing jetliners by Delta Airlines.
E) the construction of condominiums in Fort Lauderdale.

Gross Domestic Product (GDP)

The nation’s expenditure on all the goods and services produced in the country during the year at market prices; represented by GDP.

Economics

The social science that studies the production, distribution, and consumption of goods and services, and how individuals, businesses, and governments make choices about allocating resources.

Investment

The act of allocating resources, usually money, into assets with the expectation of generating income or profit.

  • Understand the concept of economic investment and distinguish it from personal investment.
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ES
Eliyahoo ShayestehpourJul 06, 2024
Final Answer :
C
Explanation :
In economics, investment refers to the purchase of goods that are not consumed today but are used in the future to create wealth. Purchasing land for future financial gains is considered a speculative investment rather than a direct economic investment in capital goods, which includes machinery, equipment, and buildings used for production.