Inventories Do Not Include Goods and Services

question 86

Multiple Choice

Inventories do not include goods and services:

• A) held for sale.
• B) used up in production.
• C) sold to customers.
• D) consumed in production.

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Definitions:

Law of Increasing Opportunity Costs

An economic principle that states as production of a good or service increases, the opportunity cost of producing another unit also increases.

Particular Good

A specific item or product that satisfies consumers' needs or wants, distinguishable from general categories or types of goods.

Market Price

The current price at which an asset or service can be bought or sold in a market.

Production Possibilities Curve

A graphical representation that shows the maximum number of goods or services that can be produced using limited resources efficiently.