Which of the Following Does Not Constitute an Act of "Investment

question 130

Multiple Choice

Which of the following does not constitute an act of "investment" as economists use the term?

• A) The city council authorizes the construction of a new fire station.
• B) A retiree buys 50 shares of stock at $10 a share and then sells the stock at a profit for $20 a share.
• C) An accountant attends a seminar on changes in the federal tax code.
• D) A department store increases its inventory of football jerseys before the Super Bowl.

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Definitions:

Area Under

Refers to the space beneath the curve of a graph in mathematics and statistics, often used to calculate integrals.

Average Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Declining

A term indicating a decrease or reduction in quantity, quality, or importance over time.