The Value of Goods Added to a Firm's Inventory in a Certain

question 112

Multiple Choice

The value of goods added to a firm's inventory in a certain year is treated as

• A)consumption, since the goods will be sold to consumers in another period.
• B)saving, since the goods are being saved until they are sold in another period.
• C)investment, since GDP aims to measure the value of the economy's production.
• D)spending on durable goods, since the goods could not be inventoried unless they were durable.

---

Definitions:

Historical Records

Documented events, transactions, or other data from the past, used for reference or analysis.

Demand Frequency

The rate at which goods or services are requested or required by customers.

Expected Demand

The anticipated quantity of a product or service that consumers will purchase in a future period under given conditions.

Monte Carlo Simulation

A computational algorithm that uses repeated random sampling to obtain numerical results, often used to assess risk and uncertainty in business and engineering models.