Home › Karnataka PUC II › economics › macroeconomics_introduction › Which combination of expenditures is most accura…
Which combination of expenditures is most accurately classified as 'investment expenditure' in macroeconomics?
AA household buying a new TV
BA firm using profits to build a new factory or buy new machinery
CThe government paying salaries to existing employees
DA consumer buying groceries
Answer & Solution
Correct answer: B. A firm using profits to build a new factory or buy new machinery
Investment in macroeconomics means expenditure that raises productive capacity — new factories, equipment, capital goods. Consumer spending on TVs, groceries or routine salary payments is not investment in this sense.
Related questions
Which statement BEST distinguishes macroeconomic decision-makers from microeconomic agentsWhich statement BEST describes the role of the State in the macroeconomy as discussed in tApproximately by how much did aggregate output in the USA fall between 1929 and 1933, the Which of the following is NOT a characteristic of a capitalist economy as defined in the cIn the classical tradition before Keynes, the dominant view was thatWhich sector is NOT one of the four major sectors of a macroeconomy in the NCERT frameworkWhich of the following is an example of an EXPORT for an economy?Which of the following best defines 'unemployment rate'?