Question

What does 'investment' mean in economics?

Options

• Buying shares and bonds in the stock market

• Addition to physical capital like machines, buildings, and roads

• Depositing money in a savings bank account

• Purchasing gold and jewellery

Answer 1

Addition to physical capital like machines, buildings, and roads

Explanation:

In economics, investment refers to the addition to physical capital such as machines, buildings, and roads, not the purchase of financial assets like shares or bonds.