C -- is correct
Purchase of a newly built property is considered investment. Purchase of stocks and bonds is not considered investment by economists.
29. Which of the following would an economist consider as investment? A) Purchase of a stock....
1) Which of the following is not true for a 5/1 Adjustable Rate Mortgage (ARM). A) is a mortgage in which the rate is adjustable for 5 years B) in the sixth year, the loan becomes an ARM C) the new rate is determined by an economic index D) a predetermined margin is usually between 2.25-3.0% E) An adjustment interval is the period between potential rate changes 2) In A(n) _____ arrangement, the borrower may end up making payment to...
1. Which of the following would increase GDP? A. Don paints his own bedroom B. All of the choices are correct C. Jill buys a used car D. Mary pays a professional plumber to install a new shower E. Anne trades Jill a candy bar in exchange for a bag of chips 2. Which of the following statements is true? A. Mrs. Smith's purchase of Starbuck's stock is included in consumption B. Consumption includes spending on durable goods but not...
Which of the following would increase output in the short run? A. An increase in stock prices makes people feel wealthier B. Government spending increases C. Firms chose to purchase more investment goods D. All of the above are correct
7. Tammy is comparing three different mutual funds. She would like to purchase the fund with the best prospects for future capital appreciation. Which of the following factors should she use to compare the funds in order to determine mutual fund outperformance? I. Weighted average P/E ratios. II. Expense ratios. III. Asset turnover ratios. a. II only b. I and II only c. I and III only d. II and III only 8. Mel is willing to accept low levels...
19) Which of the following would NOT be reported as inventory? a. Land acquired by a real estate company to build its new office building. b. Stocks and bonds held for resale by a brokerage firm. c. Partially completed goods held by a manufacturing company. d. Equipment manufactured by a factory that specializes in making construction and mining equipment 20) Which of the following is a characteristic of a perpetual inventory system? a. Inventory purchases are debited to a Purchases...
Which of the following would be considered an asset? O A. External stock portfolio O B. Cash in the bank O C. Property, plant, and equipment O D. All of the above OE. Only A & B Which of the following would be considered a liability? O A. Prepaid insurance OB, Wages payable O C. Interest expense O D. All of the above O E. Only B&C
According to the economic way of thinking, when would an economist consider a theory to be valid? a. when the implications of the theory are in favor of the current public policy that you support. b. only after carefully testing the theory using real world data or empirical evidence, controlling for other factors that could influence the test, with the results of the test confirming that theory. c. when its repeated on the news, social media, and by the people...
If an investment tax credit is introduced to give a tax advantage to any firm building a new factory or buying a new piece of equipment, which of the following statement is correct in a loanable fund market? A. Investment increases & savings decrease. B. Investment increases & savings increase. C. Investment decreases & savings decrease. D. Investment decreases & savings increase. E. None of the above is correct.
22) An investment adviser has decided to purchase gold, real estate, stocks and bonds in equal amounts. This decision reflects which part of the investment process? A) security selection B) portfolio analysis C) investment analysis D) asset allocation
which of the following would not shift either the supply or the demand curve in the market for housing? A. an increase in the number of people who are retiring. B. a possibility of higher construction costs C. an increase in the cost of home insurance D. increase in real estate prices