Which of the Following Would Be Counted as Investment in the National

question 173

Multiple Choice

Which of the following would be counted as investment in the national income accounts?

• A)the purchase of a newly issued stock 
• B)the purchase of a newly built apartment house 
• C)the purchase of a newly minted coin 
• D)the payment of tuition at a private college

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Definitions:

Accounting Profit

Net income as reported on the financial statements, which includes revenue minus expenses, excluding the cost of capital.

Depreciated Value

The reduced valuation of an asset after accounting for wear and tear, age, or obsolescence.

Market Value

The price at which an asset would trade in a competitive auction setting.

Opportunity Cost

The expense incurred from bypassing the next most favorable choice when a decision is made.