If a Firm Finds That It Has a Larger Stock

question 115

Multiple Choice

If a firm finds that it has a larger stock of inventory at the end of the period than it had at the start,the difference would be:

• A)counted as investment.
• B)subtracted from total GDP.
• C)counted as consumption on the assumption that it will eventually be sold.
• D)counted as net exports.
• E)indeterminate.

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Definitions:

Felony

A serious criminal offense that is punishable by death or imprisonment for more than one year.

Imprisonment

The state of being confined in prison as a punishment for crimes committed.

Monopoly Power

The ability of a single company or entity to control or dominate an industry or sector, reducing competition.

Market Share

The portion of a market controlled by a particular company or product.