Which of the following acts constitute investment according to the economist’s definition of that term? Amazon builds a new headquarters building in the United States. You buy 100 shares of Amazon stock. A department store chain goes bankrupt, and Amazon purchases its stores. Your family buys a newly constructed home from a developer. Your family buys an older home from another family.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
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Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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  1. Which of the following acts constitute investment according to the economist’s definition of that term?

    1. Amazon builds a new headquarters building in the United States.

    2. You buy 100 shares of Amazon stock.

    3. A department store chain goes bankrupt, and Amazon purchases its stores.

    4. Your family buys a newly constructed home from a developer.

    5. Your family buys an older home from another family. (Hint: Are any new products demanded by this action?)

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