Products that are in the process of production but are not finished and sold by the end of the year are counted as
A) a component of consumption expenditures.
B) a component of investment expenditures.
C) a component of government expenditures.
D) a component of net exports.

Question

Quizplus · Accepted Answer

Products that are in the process of production but not finished by the end of the year are considered inventory, which is counted as a component of investment expenditures in national accounts. This includes goods in process, raw materials, and finished goods that have not yet been sold.

Products That Are in the Process of Production but Are