The Value of Goods Added to a Firm's Inventory in a Certain

question 156

Multiple Choice

The value of goods added to a firm's inventory in a certain year is treated as

• A)consumption, since the goods will be sold to consumers in another period.
• B)intermediate goods, and so is not included in that year's GDP.
• C)investment, since GDP aims to measure the value of the economy's production that year.
• D)spending on durable goods, since the goods could not be inventoried unless they were durable.

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Definitions:

Surface Layer

The topmost layer of soil or material that covers the surface of an area, often subject to the most direct environmental interactions.

Open Sea

A large body of saltwater that is not enclosed by land; often referred to as the open ocean, it is deep and located away from coastal areas.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, producing oxygen as a byproduct.

Temperate Lakes

Lakes found in temperate climates, which have moderate temperatures and distinct seasonal changes.