Final answer:
Inventory (Option b) encompasses all raw materials, works in process, and finished goods within a supply chain, indicating the economic health of a business.
Step-by-step explanation:
All raw materials, work in process, and finished goods within a supply chain are collectively known as inventory. Inventory refers to the items and goods that a business has in stock at various stages of production, including those that are still being processed and those already completed. Inputs are the resources such as labor, materials, and machinery that are used to produce goods and services, also called factors of production. Inventory is categorized into durables and nondurables, with durables being long-lasting goods like cars and refrigerators while nondurables include items like food and clothing. The state of inventory levels can indicate the economic health of a business since an increase in inventory might suggest lower sales or overproduction, while a decrease might indicate better-than-expected sales.