Which of the Following Statements Is False

question 86

Multiple Choice

Which of the following statements is false?

• A)The supply and demand model serves to illustrate market behavior.
• B)Supply and demand must be combined for either to be useful in explaining and predicting market behavior.
• C)Supply illustrates the behavior of firms in a market.
• D)Demand illustrates the behavior of consumers in a market.
• E)Market equilibrium is not an important element of the supply and demand model.

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Definitions:

Infrastructure Spending

Expenditure on fundamental physical systems and facilities, such as transportation, water supply, and energy, to support societal functions and economic growth.

Worker Productivity

Worker productivity measures the output of goods and services generated per unit of labor input, such as per labor hour.

Economic Growth

The increase in the production and consumption of goods and services, leading to an improvement in the standard of living over time.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), embodying the principle of opportunity costs.