Question

What would count as investment if the concept were to be defined broadly

What would count as investment if the concept were to be defined broadly

Homework Answers

Answer #1

An investment is an asset which is acquired with the goal of generating income in future. In an economics, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

Example: expenditure by the farmers on the purchase of tractors or thrashers. It includes fixed investment and inventory investment.

Fixed investment is the investment of assets like plant and machinery, building, etc.

Inventory investment is the investment on raw materials for the production process.


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