Inventory Requires Considerable Investment for Most Manufacturers, Wholesalers, and Retailers

question 201

Multiple Choice

Inventory requires considerable investment for most manufacturers, wholesalers, and retailers. This problem is complicated by the fact that most goods are manufactured four to nine months before they are actually sold to consumers. Manufacturers that engage in this type of speculative production often need short-term financing to do all of the following except

• A) buy materials.
• B) pay wages.
• C) pay rent.
• D) buy equipment.
• E) buy supplies.

Learn the implications of fiscal policy actions (e.g., tax changes, spending adjustments) on the economy’s price level and potential output.

Discover the effects of fiscal policies on real GDP and the considerations for their effectiveness.

Understand the economic measures used by the Bush administration to stimulate the economy.

Evaluate the success and impact of one-time tax cuts on economic stimulation.

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Definitions:

Anita Whitney

An American political activist involved in early 20th-century movements for social and labor reforms, later convicted under the California Criminal Syndicalism Act.

Fourteenth Amendment

Ratified in 1868, this amendment to the U.S. Constitution granted citizenship to all persons born or naturalized in the United States, including formerly enslaved people, and provided equal protection under the laws.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Schenck v. United States

A landmark 1919 Supreme Court case that established the "clear and present danger" test for determining when speech protected by the First Amendment could be limited.