Which of the Following Statements Is FALSE

question 28

Multiple Choice

Which of the following statements is FALSE?

• A)endogenous growth theory relies on constant returns to scale of capital alone to generate ongoing growth
• B)endogenous growth theory predicts that an increase in population growth will always lead to an increase in the overall growth rate
• C)the microeconomics underlying endogenous growth theory emphasizes the existence of substantial external returns to capital
• D)endogenous growth theory predicts that a high savings rate can generate a high growth rate
• E)empirical evidence suggests that endogenous growth theory is not very important for explaining differences in growth among countries

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Definitions:

Purchases On Account

The acquisition of goods or services with an agreement to pay for them at a later date, typically through the use of credit.

Accounts Receivable Subsidiary Ledger

A ledger containing detailed information on transactions related to individual customers to whom sales on credit have been made.

Collections From Customers

The process and activities involved in gathering all payments owed by customers for goods and services sold to them.

Adjustment For Expired Insurance

This is an accounting entry made to reflect the decrease in value of an insurance premium, representing the portion of the insurance cost that has been utilized over time.