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:

Silver

A precious metal used for currency, jewelry, and industrial applications.

Multinational Firm

A business entity that operates in multiple countries beyond its home country, engaging in international trade or investment.

Accounting Policies

The specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.

Purchasing Power Parity

A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.