In 2016 the Change in Business Inventories Is -$70 Billion

question 166

Multiple Choice

In 2016 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2016

• A) are $130 billion.
• B) are $200 billion.
• C) are $270 billion.
• D) are $340 billion.

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Definitions:

Work in Process

A category of inventory referring to materials and products that are in the process of being manufactured but are not yet complete.

Raw Materials

Basic materials and inputs used in the production of goods and services.

Work in Process

Inventory items that are partially completed but require further work before they are ready for sale to customers.

Direct Labor Costs

Expenses related to the wages of employees who are directly involved in the production of goods or services.