Which of the Following Is Not True

question 280

Multiple Choice

Which of the following is not true?

• A)Inventory investment is very unstable.
• B)The purchase of inventory is considered an investment in calculating GDP.
• C)Inventory investment can be negative or positive.
• D)The purchase of software is considered an investment in calculating GDP.
• E)During severe recessions,inventory investment is positive.

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Definitions:

Willingness to Pay

The maximum amount an individual is ready to spend on a good or service, reflecting the value the consumer places on it.

Supply-Side Market Failures

Situations where the production or supply side of the market does not efficiently allocate resources due to externalities or other market imperfections.

Costs

The expenses involved in manufacturing a product or providing a service.

Benefits

Advantages or positive outcomes that result from a particular action or policy.