Asked by Anamari Kolak on Jun 11, 2024
Verified
Economists use the term ________ to refer to the creation of new capital.
A) investment
B) entrepreneurship
C) depreciation
D) finance
New Capital
Funds or resources accumulated for the purpose of investment in new projects, expansion of operations, or renewal of facilities.
Investment
Investment involves allocating resources, usually financial, with the expectation of generating an income or profit, often through the purchase of assets designed to grow in value over time.
- Clarify the economic term for investment and show how it varies from conventional financial operations.
Verified Answer
JA
Jonathan AguilarJun 15, 2024
Final Answer :
A
Explanation :
Investment refers to the creation of new capital, as it involves spending on new goods and services that can increase the capacity for future output.
Learning Objectives
- Clarify the economic term for investment and show how it varies from conventional financial operations.
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