Suppose That Inventories Were $80 Billion in 2015 and $70

question 16

Multiple Choice

Suppose that inventories were $80 billion in 2015 and $70 billion in 2016.In 2016, national income accountants would

• A)add $10 billion to other elements of investment in calculating total investment.
• B)subtract $10 billion from other elements of investment in calculating total investment.
• C)add $75 billion (= $150/2) to other elements of investment in calculating total investment.
• D)subtract $75 billion (= $150/2) from other elements of investment in calculating total investment.

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Definitions:

Health Insurance Market

A market that deals with the selling and buying of health insurance policies, facilitating coverage for medical expenses.

Adverse Selection

A situation in which one party in a transaction possesses information that the other party does not, leading to an imbalance in the transaction that can result in market inefficiency.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another. This can lead to an imbalance in power and potentially unfair transactions.

Genetic Tests

Procedures used to identify changes in chromosomes, genes, or proteins to predict disease risk, diagnose diseases, or identify carriers of disease.