At the End of the Year, Ford Realizes It Has

question 28

Multiple Choice

At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are:

• A) considered inventory and their value will increase investment.
• B) considered durable goods, and their value will increase consumption.
• C) not counted until they are sold in next year's GDP.
• D) considered a bad thing and reduce the value of investment.

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Definitions:

Physical Distribution

The process of planning, implementing, and controlling the movement and storage of goods from the point of origin to the point of consumption to meet customer requirements.

Logistics Management

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption to meet customer requirements.

Shopping Centers

Places or complexes consisting of multiple stores and businesses in a centralized location, designed for consumer shopping.

Downtown Shopping

Refers to the retail and commercial activities located in a city's central business district.