Economists Use the Word Investment to Refer to the Portion

question 53

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 consumption of goods and services.
• C) placed in an individual's savings account.
• D) in any interest-bearing account.

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Definitions:

Sourcing

The process of identifying, evaluating, and contracting with suppliers of goods and services.

Business Processes

The series of steps or activities undertaken by a company to produce a product or service, often involving multiple departments and stages.

Goods and Services

The tangible products (goods) and intangible items (services) that are produced and provided to meet consumer needs and wants.

Mode of Transportation

Mode of Transportation describes the various methods used for moving goods or passengers, including air, rail, road, and sea.