When a Firm Produces Consumer Goods and Adds Some to Inventory

question 25

Multiple Choice

When a firm produces consumer goods and adds some to inventory rather than selling them, how is the increase in inventory counted in GDP?

• A) It is counted in the current quarter GDP as capital consumption allowance.
• B) It is counted in the current quarter GDP as investment.
• C) It is counted in the current quarter GDP as consumption.
• D) It is counted in the current quarter GDP as a statistical discrepancy.

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Definitions:

Late-life Remarriages

The act of marrying again in later adulthood, often after being divorced or widowed, which can have significant social, emotional, and financial implications.

Midlife Remarriages

The act of marrying again during midlife, often bringing together blended families and dealing with unique relationship dynamics.

Satisfied

The feeling of contentment or pleasure in one's achievements, possessions, or state of being.

Widowed

The state of having lost one's spouse through death, characterized by the transition to widowhood.