The firm intentionally raised inventories from 1000 to 2000 units, i.e., planned addition of 1000 units. Since actual sales (5000) matched expected sales (5000), the actual inventory change equals the intended change. This is a planned accumulation of inventories.
Suppose a TV manufacturing unit wants to raise its inventories from 1000 units to 2000 units during the year. Expecting sale of 5000 units during the…
CUET UG 2022 — Economics Macro
2022mcqmedium
Suppose a TV manufacturing unit wants to raise its inventories from 1000 units to 2000 units during the year. Expecting sale of 5000 units during the year, the firm produces 5000+1000= 6000 TV sets. Actual sale for the firm are 5000 TV sets during the year.
This is an example of:
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Planned accumulation of inventories.
- B
Unplanned accumulation of inventories
- C
Planned decumulation of inventories
- D
Unplanned decumulation of inventories
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