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:

Discretionary Income

The amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities are accounted for.

Alternative Firms

Companies that offer non-traditional or unconventional products, services, or methodologies as compared to mainstream options.

Riparian Owner

An individual or entity that owns land adjoining a river or stream, with certain rights and responsibilities regarding water usage and protection.

Natural Stream

A watercourse that flows naturally without human intervention, which can include rivers, brooks, creeks, and rills.