If a Firm Does Not Sell All of the Goods

question 107

Multiple Choice

If a firm does not sell all of the goods it produces in a given time period,then the goods

• A)do not count in GDP for that time period but always count next period.
• B)count in GDP in the period they are sold to the final user.
• C)count positively in GDP as inventory investment.
• D)count negatively in GDP as inventory investment.
• E)do not count in GDP ever.

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Definitions:

Mutually Exclusive Project

Projects where the acceptance of one project means the others cannot be pursued due to constraints like budget, resources, or project scope.

Net Present Value (NPV)

Net Present Value is the difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Present Value

The worth at present of future monetary sums or cash flow streams, evaluated with a preset rate of return.

Cash Flows

The sum of funds flowing in and out of a company, particularly as it influences liquidity.