In economics, which term refers to the amount of inventory required to meet expected demand?

• A. Stock
• B. Supply
• C. Demand
• D. Flow

Answer: (A)

Verified step by step guidance

1. Understand the key terms: 'Stock' refers to the quantity of a good or resource held at a particular point in time, while 'Flow' refers to the quantity measured over a period of time.
2. Recognize that 'Supply' is the total amount of a good or service available for purchase, and 'Demand' is the quantity consumers are willing and able to buy at different prices.
3. Identify that the question asks for the term describing the amount of inventory needed to meet expected demand, which relates to a quantity held at a point in time rather than over a period.
4. Recall that 'Stock' is the term used in economics to describe the inventory or quantity of goods held to satisfy expected demand.
5. Conclude that among the options, 'Stock' is the correct term for the amount of inventory required to meet expected demand.