Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)If there is a fixed supply of a resource available,you should rank projects by the profitability index,selecting the project with the lowest profitability index first and working your way down the list until the resource is consumed.
• B)Practitioners often use the profitability index to identify the optimal combination of projects when there is a fixed supply of resources.
• C)If there is a fixed supply of resources available,so that you cannot undertake all possible opportunities,then simply picking the highest NPV opportunity might not lead to the best decision.
• D)The profitability index is calculated as the NPV divided by the resources consumed by the project.

Understand the basic principles of the classical and Keynesian economic theories.

Identify the role and implications of the quantity theory of money in classical economics.

Comprehend the equation of exchange and its components (MV=PQ).

Analyze the relationship between money supply, inflation, and economic stability.

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Definitions:

Aversive Conditioning

A behavioral conditioning technique where noxious stimuli are associated with undesirable or unwanted behavior in order to reduce or eliminate that behavior.

Behavior Therapist

A mental health professional who specializes in treating psychological disorders through behavior modification techniques.

Systematic Desensitization

A type of exposure therapy that associates a pleasant relaxed state with gradually increasing anxiety-triggering stimuli. Commonly used to treat phobias.

Placebo Effect

A beneficial health outcome resulting from a person's expectations of treatment rather than the treatment itself, highlighting the power of the mind.