This year a firm produces $100 million worth of cars this year and sells $102 million worth of cars.Which of the following is true?
A) GDP for this year will increase by $100 million.
B) GDP for this year will increase by $102 million.
C) Inventory investment will increase by $2 million.
D) GDP for this year will increase by $202 million.
E) The premise of the question is wrong because it is impossible for a firm to sell more than it produces in a given time period.
Correct Answer:
Verified
Q24: One bag of coffee beans is sold
Q25: Economists define investment to include purchases of
A)capital
Q26: If a firm does not sell all
Q27: Investment is the expenditure done by
A)savers.
B)firms.
C)governments.
D)the rest
Q28: Consumption expenditure includes spending
A)on intermediate goods and
Q30: Investment is defined as the purchase of
A)any
Q31: Consumption goods and services include
A)washing machines and
Q32: Which of the following would NOT be
Q33: Investment includes
A)GM's purchase of robotic machinery.
B)student purchases
Q34: A restaurant buys fish to offer as
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