Which of the Following Is False

question 169

Multiple Choice

Which of the following is false?

• A) Economists believe that they can understand most markets by applying the model of demand and supply.
• B) When economists apply the model of demand and supply, they are using the model of perfect competition.
• C) Many changes in the past 20 years have made markets more competitive by increasing ease of entry.
• D) Price-taking firms produce differentiated goods.

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Definitions:

Financial Section

Part of a company's annual report or filings that contains financial statements, notes, and commentaries pertinent to the financial performance and position of the company.

CAFR

Comprehensive Annual Financial Report, detailed financial report used by governments to provide a full overview of financial status.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term to lease a similar asset.

Implicit Interest Rate

The interest rate inferred from the lease payments in a leasing agreement, indicating the cost of borrowing over the lease term.