What is the difference between an economic investment and a financial investment?
What will be an ideal response?
An economic investment involves paying for new additions to the nation’s capital stock or new replacements for capital stock that has worn out. Examples of economic investments include roads, bridges, factories and houses. A financial investment involves buying or building an asset with the expectation that it will result in financial gain. A financial investment doesn’t distinguish between creating new capital stock and purchasing old stock. In most cases, when referring to an investment, people mean a financial investment.
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Which of the following describes an oligopoly?
(A) Eight to ten firms producing 90 percent of the output. (B) Four firms producing 70 to 80 percent of the output. (C) One firm producing 95 percent of the output. (D) Eight to ten firms producing 60 to 70 percent of the output.
Which three macroeconomic variables together best describe the health of the economy?
A. Output, GDP, and inflation B. GDP, unemployment, and employment C. Output, prices, and employment D. Output, inflation, and prices