Which of the Following Statements Draws a False Conclusion

question 86

Multiple Choice

Which of the following statements draws a false conclusion?

• A) Life expectancy in an average African country is lower than in an average European country; therefore Europeans can expect to outlive Africans.
• B) Nations that currently produce no capital goods, and whose inhabitants are hungry, risk famine with internally funded capital investments.
• C) Some African nations have substantially more food and capital investment than others; therefore, their standard of living is higher.
• D) Population reduction policies, if effective, can improve the nation's wealth by increasing real per capita GDP.
• E) The vicious circle of poverty argument states that poverty precludes capital investment and that no capital investment perpetuates poverty.

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Definitions:

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to ordering and receiving goods.

Inventory Value

The reported value of a company's goods or materials that have not yet been sold, calculated based on the cost of acquisition or manufacturing.

Cash Balances

Cash Balances are the amount of cash or cash equivalents that a company or an individual holds.

Transactions

The action of buying or selling in a business context, or the records of these actions.