Which statement is not related to the in

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which statement is not related to the inventory.

Options:

Unsold finished, or semi finished goods which a firm carries to the next year.

Inventory may have a higher value at the end of the year.

The change of inventories of a firm during a year = production - Sale

It is a flow variable.

Correct Answer:

It is a flow variable.

Explanation:

The correct answer is Option (4) → It is a flow variable.

(A) Unsold goods carried forward → True (definition of inventory).
(B) Inventory value may increase at year-end → True (depends on unsold stock).
(C) Change in inventories = Production − Sales → True (this gives flow of inventory change).
(D) It is a flow variable → False, because inventory itself is a stock variable.