If a Firm Produces 100 Units of a Particular Good

question 84

Multiple Choice

If a firm produces 100 units of a particular good during a year and,of these,only 90 units are sold during the same year,then the 10 unsold units are treated as the firm's inventory investment expenditure for the year,as if the firm had bought the items for its stock of inventories from itself.For the economy as a whole,this accounting practice ensures that

• A) production equals expenditure each year.
• B) inventory investment is always positive each year.
• C) capital consumption allowances are zero each year.
• D) saving and investment are equal each year.
• E) net private-sector investment is zero each year.

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Definitions:

Pain Management

The process of providing medical care that reduces or eliminates the pain experienced by a patient through various strategies and therapies.

Sensory Input

The stimuli that are perceived by our senses like sight, sound, smell, taste, and touch, which are then processed by our brains to engage with the environment.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body.

OECD

The Organisation for Economic Co-operation and Development, an international organization that works to build better policies for better lives among its member countries.