Bob's Funky T-shirts began the year with 1,000 shirts in inventory, produced 10,000 shirts during the year and ended the year with 1,100 shirts in inventory. The 100 shirts added to his inventory will be classified as
A) consumption expenditure.
B) investment.
C) net exports of goods and services.
D) exports of goods and services.
E) nondurable consumption goods.
Question 2
Sharon consumes 10 chocolates when the price of one chocolate is 2. If her arc elasticity of demand for chocolates is -1, she consumes ________ chocolates when the price increases to 4.
A) 5
B) 6
C) 8
D) 9
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