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11. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to the activity of transforming savings into investment.

a. Resource development

b. Capital formation

c. Credit syndication

d. None of these

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Principles of Economics
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Related questions

3. Common resources 

a. are owned by specific people.

b. refers to goods “owned” by society at large and freely usable by anyone.

c. are inexhaustible.

d. refers strictly to the land resource.

What is the difference between financial investment and economic investment?

A. There is no difference between the two.

B. Financial investment refers to the purchase of financial assets only; economic investment refers to the purchase of any new or used capital goods.

C. Economic investment is adjusted for inflation; financial investment is not.

D. Financial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods.

The term market mechanism refers to

a. The use of market prices and sales to signal the desired output.

b. Resource allocation based on a production possibilities curve.

c. Resource allocation based on consumer needs.

d. Government laws and regulations concerning how the market should operate.

 

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