Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A)In a centrally planned economy, decisions concerning the three essential questions are made by those who control the government.
• B)In a market economy, firms do not interact with consumers.
• C)The two alternative approaches to the three essential questions are market economies and command economies.
• D)In a market economy, decisions concerning the three essential questions result from interactions taking place in markets.
• E)In both centrally planned and market economies, the three essential economic questions are what, how, and for whom.

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Definitions:

Receiving Report

A document used to record the receiving of goods, detailing the quantity and condition of the goods received.

Materials Ledger Card

A record card that tracks the quantity and value of materials on hand in inventory over time.

General Ledger

A comprehensive record of all financial transactions over the life of an organization, serving as the primary source for preparing financial statements.

Factory Overhead

Indirect costs incurred during the manufacturing process, not directly tied to the production of goods, such as utilities or salaries for management.