Investment, as defined by economists, would include the purchase of a:

• A. government bond
• B. shares of stock
• C. new factory building
• D. used car

Answer: (C)

Verified step by step guidance

1. Understand the economic definition of investment: In economics, investment refers to the purchase of goods that are used to produce other goods and services in the future. This typically includes spending on capital goods like machinery, buildings, and equipment.
2. Identify the options given: government bond, shares of stock, new factory building, and used car.
3. Analyze each option: Government bonds and shares of stock are financial assets, representing ownership or debt claims, but they do not directly create new productive capacity.
4. Consider the new factory building: This is a physical capital good that increases the productive capacity of the economy, fitting the economic definition of investment.
5. Evaluate the used car: While a car is a physical good, a used car does not represent new production or an increase in capital stock, so it is not considered investment in economic terms.