Which of the Following Statements Is False About Capital in an Industry

question 131

Multiple Choice

Which of the following statements is false about capital in an industry?

• A)An industry experiencing economic profits gains capital.
• B)Increased government taxation of an industry prevents some capital movement.
• C)The movement of capital occurs in the short run and the long run.
• D)Market forces cause capital to move where it is most highly valued.
• E)The movement of capital is determined by how profitable industries are.

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Definitions:

Personal Concerns

Matters or issues that are primarily related to an individual's private interests, well-being, or personal circumstances.

Agent

A person or entity legally authorized to act on behalf of another person or entity in financial or business matters.

Indemnify

To compensate for harm or loss, typically through financial payment, or to guarantee protection against legal liability or penalties.

Losses

Financial or material detriment experienced by an entity, often due to business operations or market conditions.