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Questions and Answers
What term is used for the addition to the stock of capital of a firm?
What term is used for the addition to the stock of capital of a firm?
- Intermediate goods
- Investment (correct)
- Fixed business investment
- Value added
In economics, what is the rise in the value of a firm's inventories treated as?
In economics, what is the rise in the value of a firm's inventories treated as?
- Value added
- Investment expenditure (correct)
- Intermediate goods
- Fixed business investment
What category of investment refers to the addition of housing facilities?
What category of investment refers to the addition of housing facilities?
- Residential investment (correct)
- Unplanned accumulation
- Investment expenditure
- Fixed business investment
What happens when there is an unexpected fall in sales according to the text?
What happens when there is an unexpected fall in sales according to the text?
How is the change in inventories treated in economics when sales are unexpectedly low?
How is the change in inventories treated in economics when sales are unexpectedly low?
Which term is used for the addition to the machinery, factory buildings, and equipment employed by firms?
Which term is used for the addition to the machinery, factory buildings, and equipment employed by firms?
What does the sign '≡' signify in the context of the text?
What does the sign '≡' signify in the context of the text?
How is an identity different from an equality in mathematics?
How is an identity different from an equality in mathematics?
In the context of inventory accounting, what does the change of inventories during a year represent?
In the context of inventory accounting, what does the change of inventories during a year represent?
If a firm starts a year with inventories worth $500, produces goods worth $1,200, and sells goods worth $900 during the year, what is the change in inventories?
If a firm starts a year with inventories worth $500, produces goods worth $1,200, and sells goods worth $900 during the year, what is the change in inventories?
Which term represents goods that are used up during the production process in the context of inventory accounting?
Which term represents goods that are used up during the production process in the context of inventory accounting?
What is an example of an unplanned accumulation of inventories?
What is an example of an unplanned accumulation of inventories?
Why must we calculate the change of inventories using '≡' instead of '=' as per the text's explanation?
Why must we calculate the change of inventories using '≡' instead of '=' as per the text's explanation?
In the context of inventory levels, what would be an example of planned accumulation?
In the context of inventory levels, what would be an example of planned accumulation?
What is an instance of planned decumulation of inventories?
What is an instance of planned decumulation of inventories?
How is unplanned decumulation of inventories described?
How is unplanned decumulation of inventories described?
What could lead to planned accumulation of inventories in a firm?
What could lead to planned accumulation of inventories in a firm?
If a firm wants to reduce its inventory levels from 100 to 25 shirts, what would be an example of planned action?
If a firm wants to reduce its inventory levels from 100 to 25 shirts, what would be an example of planned action?
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