Which of the Following Statements Is False

question 74

Multiple Choice

Which of the following statements is false?

• A)Industry life cycles measure the growth path of an industry through 5 stages
• B)Industry life cycles predict an industry's sensitivity to the economy
• C)The industry life cycle curve is graphed so that, the steeper the slope of the line, the faster the growth rate of the industry
• D)The particular phase of the life cycle of an industry determines the growth of earnings, dividends, capital expenditures, and market demand for products
• E)The five stages of the industry life cycle are development, growth, expansion, maturity, and decline

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Definitions:

Utility Function

A mathematical representation in economics of how a person ranks different bundles of goods according to their level of happiness or satisfaction.

Consumption Bundle

The collection of all the goods and services consumed by a given individual.

Satisfaction

The feeling of pleasure or contentment resulting from achieving one's goals or meeting one's needs and desires.

Marginal Utility

The extra utility or pleasure a person receives by using an additional unit of a good or service.