Economists define investment to include: Select one: O any increase in business inventories O the addition of cash to a savings account O the purchase of common or preferred stock the purchase of any durable good eg a car or a refrigerator
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- What is the term "investment" define? Explain in a economic sense.Is the purchase of equipment or machinery a part of consumption or investment? Why?Which of the following is an example of investment? OA. Continental buying Airbus planes O B. Mike buying an Apple iPad O C. Ron buying stocks and bonds. O D. Randy buying a BMW
- Use the following consumption schedule to answer the next question. At income level 3, the amount of saving is represented by the line segment: Consumption A B 45° C 1 O Multiple Choice FD. 3 Disposable Income FH. GH. m O FG. 2 G HWhich of the following situations represents investment? Saving? ExplainYour family takes out a mortgage and buys a new house. You use your paycheque to buy stock in Sagicor Financial Services.How to classify goods as consumption goods and capital goods? Is there any specific way to do so?
- What determines whether a good is “capital” or a “consumer good”? How it is purchased: with business funds or with personal funds How it is used: to produce further wealth, or to be consumed Where it is located: in a home or in a business Where it is purchased: from a wholesaler or from a retailer Who uses it: the person buying it or an employee of theirswhich of the following occurs when disposable income is zero? Select one: a. consumption is negative b. consumption must be zero c. none of the given options d. saving must be zeroWhat is the type of consumption of household spending which is independent
- Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Neha borrows money to build a new lab for her engineering firm. Teresa purchases stock in Pherk, a pharmaceutical company. Sam purchases a new condominium in San Francisco. Lorenzo purchases a certificate of deposit at his bank.hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu toAn automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales? d. What is the value of GDP from the sale of this car?