The Inventories as a Factor of Production Motive for Holding

question 44

Multiple Choice

The inventories as a factor of production motive for holding inventories suggests that:

• A)firms hold inventories in order to produce more output.
• B)when sales are low, firms produce more than they sell and put the extra goods in inventories.
• C)firms hold inventories to avoid losing sales.
• D)when a product is only partly completed, its components are counted as part of the firm's inventory.

---

Definitions:

Anterior Cerebral Arteries

Arteries supplying blood to most of the medial portions of the frontal lobes and superior medial parietal lobes of the brain.

Pulmonary Trunk

The major blood vessel that carries blood from the right ventricle of the heart to the lungs for oxygenation.

Pulmonary Veins

Blood vessels that carry oxygenated blood from the lungs to the left atrium of the heart.

Pulmonary Circuit

The route of blood flow from the heart to the lungs and back, during which blood becomes oxygen-rich.