Use the Figure Below to Answer the Following Questions

question 82

Multiple Choice

Use the figure below to answer the following questions.

Figure 20.1.1
-Refer to Figure 20.1.1,which shows the circular flow of expenditure and income for Venus.During 2012,A was $100,B was $50,C was $30 and D was $10.How much is GDP?

• A)$75
• B)$50
• C)$90
• D)$100
• E)None of the above

---

Definitions:

Batching Economies

Cost advantages gained by producing or purchasing goods in large quantities at once.

Cycle Stocks

Inventory that companies hold to meet normal sales demand, as opposed to inventory held in anticipation of peak demand or for buffering against supply chain uncertainties.

Ordering Cost

The expenses associated with placing and receiving orders for materials, including costs related to paperwork, communication, and transportation.

Inventory

The stock of goods, materials, parts, and products that a business holds to fulfill future sales or production needs.