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.
A. considered inventory and their value will increase investment.
Economics
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If a firm's inventory decreases, the gross domestic product (GDP) also decreases
a. True b. False Indicate whether the statement is true or false
Economics
The cost or benefit of a market activity borne by a third party is
A. A monopoly. B. An externality. C. A government directive. D. Black-market economic activity.
Economics