Which of the Following Is True Regarding the Measurement and Use

question 47

Multiple Choice

Which of the following is true regarding the measurement and use of indirect and intangible benefits in capital investment decision making?

• A) ABC has made identifying indirect benefits easier.
• B) Intangible benefits cannot be measured.
• C) Indirect and intangible benefits should not be considered, only direct costs and benefits are considered.
• D) Actions by competitors are not considered.
• E) None of these.

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Definitions:

Government Spending

The total expenditure by the government on goods and services, including public services, infrastructure, and welfare programs, to influence the economy.

Government Transfer Payments

Payments made by the government to individuals through programs such as Social Security and unemployment insurance, without any services being rendered in return.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without additional government intervention.

Natural Rate

Often refers to the natural rate of unemployment, indicating the lowest unemployment rate an economy can sustain over the long term without causing inflation.