When Economists Discuss the Nominal Value of an Economic Variable

question 301

Multiple Choice

When economists discuss the nominal value of an economic variable, the variable is

• A) expressed in current dollars.
• B) expressed as an index figure.
• C) adjusted for a changing price level.
• D) expressed as a percentage.

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Definitions:

Closing Inventory

The quantity and value of stock on hand at the end of an accounting period.

Direct Material

Raw materials that can be directly attributed to the production of goods.

Finished Products

Goods that have completed the manufacturing process and are ready for sale.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.