Which One of the Following Is an Example of a fiNancial

question 73

Multiple Choice

Which one of the following is an example of a financial investment but not an economic investment?

• A) renovating a shopping mall
• B) constructing an addition to a petroleum refinery
• C) building a new store
• D) buying gold to sell later at a higher price

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Definitions:

Economic Expansion

A phase in the business cycle where the economy grows and increases its output, characterized by a rise in employment, consumer spending, and production.

Mild Recession

A period of slight economic decline wherein the economy's growth slows down, but the downturn is not severe enough to be classified as a full recession.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product much faster than with traditional manufacturing methods.

Standardized Engine

An engine design that is made uniform across different models and manufacturers, enhancing compatibility and efficiency.