The Value of Goods Added to a Firm's Inventory in a Certain

question 156

Multiple Choice

The value of goods added to a firm's inventory in a certain year is treated as

• A)consumption, since the goods will be sold to consumers in another period.
• B)intermediate goods, and so is not included in that year's GDP.
• C)investment, since GDP aims to measure the value of the economy's production that year.
• D)spending on durable goods, since the goods could not be inventoried unless they were durable.

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Definitions:

Selectively Permeable

A characteristic of biological membranes that allows only certain substances to pass through while blocking others.

Sodium Ions

Positively charged particles derived from the element sodium, essential in various physiological processes including nerve signal transmission and muscle contraction.

Neuron

A specialized cell transmitting nerve impulses; a fundamental unit of the brain and nervous system, responsible for receiving, processing, and transmitting information.

Motor Neuron

A type of neuron that sends impulses from the central nervous system to a muscle or gland, prompting action.