During the Third Quarter of This Year a Firm Produces

question 85

Multiple Choice

During the third quarter of this year a firm produces consumer goods and adds some of those goods to its inventory.During the fourth quarter of this year,the firm sells the goods at a retail outlet,with the result that the value of its inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter.These actions affect which component(s) of fourth-quarter GDP?

• A)they increase consumption and have no affect on investment
• B)they increase consumption and decrease investment
• C)they have no affect on either consumption or investment
• D)they have no affect on consumption and decrease investment

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Definitions:

Protons

Positively charged subatomic particles found within the nucleus of an atom, defining the element's atomic number.

National Origin

The country or geographic area where a person was born or where their ancestors come from, often a factor considered in discussions about diversity and discrimination.

Sexual Preferences

An individual's patterns of attraction to others, based on physical, emotional, or other characteristics.

Race and Color

Aspects of social and personal identity based on one’s ethnic background and the pigmentation of one’s skin.