Inventories are goods that can be considered as "purchased" by
A)the firms that produce them.
B)the consumers that ultimately buy them.
C)the government since they are tax deductible.
D)no one since they are not counted as part of GDP.

Question

Quizplus · Accepted Answer

Inventories are goods that are produced by firms but are not yet sold. Therefore, they are considered as "purchased" by the firms that produce them and are included in the calculation of GDP as part of investment. Option B is not correct because consumers do not purchase inventories directly. Option C is not correct since the fact that inventories are tax deductible does not determine who owns them. Option D is incorrect because inventories are counted as part of GDP.

Inventories Are Goods That Can Be Considered as "Purchased" by