Which of the Following Is the Best Example of Investment

question 162

Multiple Choice

Which of the following is the best example of investment as defined by economists?

• A)A restaurant owner buys a freezer to store ingredients for the restaurant meals.
• B)A college professor buys a truck to drive around in.
• C)A business manager purchases stock on the New York Stock Exchange.
• D)A worker deposits money into a long-term retirement account.

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Definitions:

Unemployment

Unemployment is the state of being without a job despite actively looking for work, reflecting the portion of the labor force unable to find gainful employment.

Friedman-Phelps Analysis

The Friedman-Phelps analysis introduces the concept of the natural rate of unemployment, arguing that inflation and unemployment rates are not linked in the long term due to adaptive expectations.

Inflation

The pace at which overall prices for goods and services increase, causing the value of money to diminish.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.