Question
Which of the following constitutes an investment in the economy?
Select the correct answer using the code given below:
- Production of consumption goods
- Production of capital goods
- Production of services
- Buying and selling of shares
Select the correct answer using the code given below:
Answer: Option B
Answer: (b)
The value of capital goods produced is defined as investment.
Hence, the production of consumption goods and services are not investment. Buying and selling shares from one person to another person is also not an investment for the economy as only the ownership changes and nothing happens on the ground.
So, only (ii) statement is true.
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Answer: (b)
The value of capital goods produced is defined as investment.
Hence, the production of consumption goods and services are not investment. Buying and selling shares from one person to another person is also not an investment for the economy as only the ownership changes and nothing happens on the ground.
So, only (ii) statement is true.
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