Additions to Inventory Is

question 69

Multiple Choice

Additions to inventory is

• A) not counted as an expenditure in GDP accounting.
• B) counted as an intermediate input.
• C) counted as a component of investment spending.
• D) subtracted from sales revenue in calculating profit income.
• E) considered national savings.

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Definitions:

Defense Budget

The defense budget is the portion of a national budget that is allocated to military spendings, including salaries, training, operations, and equipment.

Oil Crisis

A period marked by major interruptions in oil supply and subsequent increases in oil prices, often due to geopolitical tensions or conflicts.

Military Coalition

An alliance formed between multiple countries or groups to achieve a common military goal, often seen in contexts of war or peacekeeping missions.

Saudi Arabia

A country in the Middle East known for its vast oil reserves, playing a significant role in global energy markets and geopolitics.