Asked by Timothy Robinson on Jun 26, 2024

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Which of the following would not be considered an act of investing in capital?

A) a father paying for his daughter's college education
B) a firm buying a new energy-saving machine
C) the state government building a new road
D) the Postal Service delivering the mail

Capital

Resources or assets used in the production of goods and services.

College Education

Refers to the post-secondary education that students receive at universities, colleges, and other institutions, offering degrees and certifications beyond high school education.

Energy-Saving Machine

A type of machinery or device designed to use less energy for the same level of output, contributing to efficiency and reduced environmental impact.

  • Explain the concept of investment using economic vocabulary and differentiate it from standard financial acts.
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MR
Monse RamirezJun 29, 2024
Final Answer :
D
Explanation :
Investing in capital involves spending money on goods or services that can improve future productivity or income. Choices A, B, and C all represent investments in human capital, physical capital, and infrastructure, respectively, which can lead to increased productivity or economic growth. Choice D, the Postal Service delivering the mail, is an operational expense rather than an investment in capital, as it does not directly increase the productive capacity of the economy.