A Disadvantage of a JIT System Is ____________

question 67

Multiple Choice

A disadvantage of a JIT system is ____________.

• A) an increases inventory turnover
• B) a reduction in inventory holding costs
• C) a reduction of the cost of capital tied up in inventory
• D) reduction in warehousing costs
• E) it leaves no buffer stock of inventory

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Definitions:

Inflationary Gap

A macroeconomic term referring to the situation where the demand for goods exceeds the supply, leading to increased prices or inflation.

Inflationary Gap

A situation where aggregate demand in an economy exceeds aggregate supply at the full employment level, leading to inflation.

Equilibrium GDP

The level of real GDP at which the total quantity of goods and services produced equals the total quantity of goods and services purchased.

Full Employment GDP

The output level of goods and services in the economy when all available labor resources are being used in the most efficient way possible.