Consider the following statement related to investment:

(A) The common notion is that investment is using money to buy physical or financial assets.

(B) From an economist's view, investment is capital formation.

(C) While measuring the final output, the portion which comprises capital goods, is the Gross Investment of an Economy.

(D) The common and economic view regarding investment does not make any difference. It is the same.

Choose the correct answer from the options given below:

1. (A), (B) and (C) only
2. (A), (B) and (D) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

Option 1 -> (A), (B) and (C) only - Statement A is correct as common people view investment as buying assets. Statement B is correct as economists define investment as capital formation. Statement C is correct as gross investment represents capital goods in output measurement. Statement D is incorrect because there IS a difference between common and economic views.

Option 2 -> (A), (B) and (D) only - Incorrect because statement D is false; there is a clear difference between common and economic perspectives on investment.

Option 3 -> (A), (B), (C) and (D) - Incorrect because statement D is false.

Option 4 -> (B), (C) and (D) only - Incorrect because it excludes statement A (which is true) and includes statement D (which is false).

Hence, Option 1: (A), (B) and (C) only -> Statement D is the key differentiator here. The common view treats buying any asset (including stocks, bonds, property) as investment, while the economic view specifically refers to capital formation - the creation of new productive assets. When you buy existing shares, it's investment in common terms but not in economic terms since no new capital is created. Only expenditure on new capital goods (machinery, buildings, infrastructure) counts as investment in national income accounting. Therefore, statements A, B, and C are correct while D is incorrect. -> correct