Final answer:
Non-inventory items refer to products that are bought and sold but are not considered inventory, like structures, land, art, and durable goods. Inventory items are goods held by businesses for sale, with levels fluctuating based on sales performance.
Step-by-step explanation:
Non-inventory items are used for products that are bought and/or sold but are not tracked as inventory. These could be assets such as structures, including homes, office buildings, or factories, or durable goods like cars and refrigerators, which form a significant part of the economy. Additionally, they include items like land, art, rare coins, or stamps, which can be bought and sold but are not typically held as inventory by businesses.
Inventories represent a smaller segment that includes goods produced by a business but not yet sold to consumers. The level of inventories sitting on shelves fluctuates with business performance, decreasing when sales exceed expectations and increasing when sales are lower than expected.