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:

Supercomputer

A powerful computing machine capable of processing vast amounts of data and performing complex calculations much faster than traditional computers.

Invest

To invest means to allocate resources, usually money, with the expectation of generating an income or profit. This can involve purchasing stocks, bonds, or other investment vehicles.

Organizations

Entities created to achieve specific goals through a collective effort, they can be public or private, and include companies, non-profits, and governments.

Top Five

Refers to the leading or most significant five items in a group or category.