Which of the Following Statements of the Expected Flow of Future

question 189

Multiple Choice

Which of the following statements of the expected flow of future benefits is false?

• A) Firms must rely on forecasts of expected future benefits to make sensible investment decisions.
• B) Households, business firms, and governments all evaluate the expected flow of benefits when making investment decisions.
• C) If future benefits are overestimated by the firm, the firm will under invest in capital.
• D) If future benefits are underestimated by the firm, the firm will under invest in capital.

---

Definitions:

External Source

An entity or information that originates from outside an organization or research study.

Reference Source

Materials or resources used to obtain information or data to support arguments, theories, or ideas.

Internal Locus

Refers to the belief that one's own actions or choices directly influence the outcomes in their life, as opposed to external forces.

Situational Factor

External influences that can impact consumer behavior or the outcome of marketing decisions at a given time.