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

question 76

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 that year.
• D) spending on durable goods,since the goods could not be inventoried unless they were durable.

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Definitions:

Mechanisms

The underlying processes or systems that explain how something works or operates, often used in scientific and psychological contexts.

Piagetian

relating to the theories and work of Jean Piaget, a Swiss psychologist known for his studies on cognitive development in children.

Information-Processing Theorist

A person who studies how humans process information, focusing on mechanisms such as perception, memory, and problem-solving.

Child Development

The physical, cognitive, social, and emotional growth that occurs from infancy through childhood and into adolescence.