All of the Following Actions Are Investments in the Sense

question 111

Multiple Choice

All of the following actions are investments in the sense of the term used by macroeconomists except:

• A) IBM's building a new factory.
• B) corner candy store's buying a new computer.
• C) John Smith's buying a newly constructed home.
• D) Sandra Santiago's buying 100 shares of IBM stock.

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Definitions:

Oligopolistic Markets

Markets characterized by a few large producers that have the ability to influence prices, but must consider the actions of their rivals.

Minimum Efficient Scale

The lowest level of output at which a firm can minimize long-run average total cost.

U.S. Agriculture

The sector of the United States economy that deals with the production of plants and animals for food, fiber, and other products.

Farm Share

The portion of the final retail price of agricultural products that goes back to the farmers.