Inventory Investment Is Included as a Spending Item When Computing

question 3

Multiple Choice

Inventory investment is included as a spending item when computing GDP because

• A)GDP is meant to be a measure of total sales.
• B)of a historical accident.
• C)it is the same as plant and equipment investment.
• D)not everything produced in a given time period is sold during that time period.
• E)there would otherwise be double counting.

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Definitions:

Financial Resources

Monetary assets or capital available to an individual, organization, or country for spending, investing, or saving.

Competitive Advantage

The attribute that allows an organization to outperform its rivals in the market, leading to greater sales or margins and/or retaining more customers.

Strategic Intent

The focus on and application of organizational energies on a unifying and compelling goal.

Unifying Target

A common goal set for a group or team to focus their efforts towards achieving together.