How Are Goods That Go into Inventory and Are Not

question 23

Multiple Choice

How are goods that go into inventory and are not sold during the current period treated in GDP terms?

• A) They are counted as intermediate goods and so are not included in current-period GDP.
• B) They are counted in current GDP only if the firm that produced them sells them to another firm.
• C) They are included in current-period GDP as inventory investment.
• D) They are included in current-period GDP as consumption.

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Definitions:

Mushrooms

Fungi that produce a distinctive fruiting body, often edible and used in cooking, but some species are poisonous or have medicinal properties.

Producer

Autotroph. Organism that makes its own food using energy and nonbiological raw materials from the environment.

Detritivore

Animal that feeds on small bits of organic material.

Trophic Category

A classification describing the feeding position and role of an organism in an ecosystem's food chain or web.