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.

Determine the proceeds from discounting promissory notes.

Calculate and compare returns on different financial investments over various periods.

Understand how to calculate simple interest and the maturity value of promissory notes.

Apply money market investment principles, including yield rates and discounts.

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Definitions:

Unused Capacity

The portion of a company's production capability that is not currently being utilized for production.

Job-Order Costing

An accounting methodology that tracks costs individually for each job, rather than on a department or factory-wide basis.

Automated Shaper

Machinery equipped with computer numerical control (CNC) to shape materials into specific designs with minimal human intervention.

Unused Capacity

Refers to the available production or service facility resources that are not currently being used.