Which of the following is the best example of public investment?

• A. Buying a personal car for commuting
• B. Purchase of private company shares by individuals
• C. Construction of a city park
• D. Opening a new restaurant by a private entrepreneur

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of public investment. Public investment refers to spending by the government or public sector on projects or goods that provide benefits to the community as a whole, such as infrastructure, parks, or public services.
2. Step 2: Analyze each option to determine whether it represents public or private investment. Buying a personal car and opening a new restaurant are private expenditures benefiting individuals or private businesses.
3. Step 3: Recognize that purchasing private company shares is a financial investment by individuals, not a public investment, as it does not involve government spending or public goods.
4. Step 4: Identify that construction of a city park is typically funded and managed by the government or local authorities, providing a public good accessible to all residents, which fits the definition of public investment.
5. Step 5: Conclude that among the options, construction of a city park is the best example of public investment because it involves government spending on a public good that benefits the community.