Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A) The marginal and average product curves intersect at the maximum level of output.
• B) The marginal product curve always has a positive slope.
• C) At every output level the marginal product curve lies above the average product curve.
• D) The marginal product and average product curves intersect when average product is at its maximum.

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Definitions:

Restricted Fund Method

An accounting method used by not-for-profit organizations where donations are classified based on donor-imposed restrictions on their use.

Operating Fund

A reserve of cash set aside for the day-to-day financial operations of an organization, business, or government entity.

Capital Fund

A reserve of money that is set aside for long-term investment projects or to cover future expenses and liabilities.

Endowment Fund

A fund established to finance a particular purpose of an organization, where the principal is kept intact while the investment income is available for use.