In an Economy, the Value of Inventories Was $75 Billion

question 212

Multiple Choice

In an economy, the value of inventories was $75 billion in 2016 and $63 billion in 2017.In calculating total investment for 2017, national income accountants would

• A)decrease it by $75 billion.
• B)increase it by $63 billion.
• C)decrease it by $12 billion.
• D)increase it by $138 billion.

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or utility that a person derives from consuming each additional unit of a good or service.

Demand Curves

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Marginal Utility

The extra value or satisfaction garnered by a consumer with the acquisition of one more unit of a good or service.

Total Utility

The overall satisfaction or happiness received from consuming a certain amount of goods or services.