Economists Use the Word Investment to Refer to the Portion

question 10

Multiple Choice

Economists use the word investment to refer to the portion of income that is:

• A) spent on productive inputs, such as factories, machinery, and inventories.
• B) not immediately spent on the consumption of goods and services.
• C) placed in an individual's savings account.
• D) stored in any interest-bearing account.

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Definitions:

Preconventional Morality

First level of Kohlberg’s theory of moral reasoning in which control is external and rules are obeyed in order to gain rewards or avoid punishment or out of self-interest.

Authoritarian Morality

A set of moral principles that emphasizes obedience to authority, often without questioning the moral correctness of the authority's decrees.

Self-Efficacy

Sense of one’s capability to master challenges and achieve goals.

SAT

A standardized test widely used for college admissions in the United States.