Related to the Economics in Practice on Page 239: All

question 50

Multiple Choice

Related to the Economics in Practice on page 239: All else equal, more highly educated people are ________ than those who have less education.

• A) less likely to hold stock
• B) no more or no less likely to hold stock
• C) more likely to hold stock
• D) always going to earn more from investing in stock

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Definitions:

Excess Inventory

A situation where a company holds a larger amount of inventory than it can sell or use within a reasonable period, often leading to increased costs.

Tied-up Funds

Money that is currently invested, in use, or otherwise not readily available for free spending or other investment opportunities.

Lost Sales

Potential sales that were not realized due to stock shortages, inadequate service, or other operational issues.

Retail Method

An accounting method used to estimate inventory value by applying a cost-to-retail price ratio, based on the beginning inventory plus purchases, less the sales at retail.