Suppose That in 2000, Canada Cars Corporation Produced $20 Million

question 16

Multiple Choice

Suppose that in 2000, Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth. Is the remaining $4 million increase in inventories part of GDP for 2000? 1. Yes, since changes in inventories are part of consumption expenditures.
2. Yes, since they are part of the economy's output in 2000.
3. Yes, since changes in inventories are part of actual investment.

• A)1 only
• B)2 only
• C)3 only
• D)both 1 and 2
• E)both 2 and 3

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Definitions:

Lignin

Material that strengthens cell walls of vascular plants.

Stomata

Small openings on the surfaces of plant leaves and stems that facilitate gas exchange.

Vascular Tissue

Specialized tissue in plants that is responsible for the transport of water and nutrients throughout the plant body.

Ground Tissue

Plant tissue that makes up the bulk of the plant body, involved in photosynthesis, storage, and support, excluding the vascular and dermal tissues.