The difference between inventories and inventory investment is that typically ________.
A)the first one is a stock of unfinished or unsold goods;the second one is a flow that indicates productive activity
B)the first one denotes the change in holdings of capital;the second one includes most final goods
C)the first one is measured at the beginning of the year;the second one is measured at the end of the year
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Inventories refer to a stock of unfinished or unsold goods, while inventory investment is a flow that indicates productive activity. Therefore, option A is the correct one. Option B is incorrect because inventory investment does not necessarily include most final goods. Option C is also incorrect because both inventories and inventory investment can be measured at different points in time. Option D and E are also incorrect for the same reasons as in options B and C.

The Difference Between Inventories and Inventory Investment Is That Typically