If a firm produces 100 units of a particular good during a year and,of these,only 90 units are sold during the same year,then the 10 unsold units are treated as the firm's inventory investment expenditure for the year,as if the firm had bought the items for its stock of inventories from itself.For the economy as a whole,this accounting practice ensures that
A) production equals expenditure each year.
B) inventory investment is always positive each year.
C) capital consumption allowances are zero each year.
D) saving and investment are equal each year.
E) net private-sector investment is zero each year.
Correct Answer:
Verified
Q91: Corporate and like profits before taxes are
Q92: Wages and salaries are examples of
A) consumption.
B)
Q93: Private-sector investment does NOT include which of
Q94: Capital consumption allowances correspond to each of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents