Which of the Following Statements Is FALSE

question 194

Multiple Choice

Which of the following statements is FALSE?

• A) A frost that destroys half the orange crop will create a shortage of oranges.
• B) It is possible to have a shortage of a good even if its supplies are abundant.
• C) Politicians often blame speculators and profiteers for rising prices rather than changes in supply and demand.
• D) To eliminate a shortage, prices must rise.

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Definitions:

Accounts Payable

The amount of money that a company owes to its creditors for goods or services that it has received but not yet paid for.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the individual's tax bracket.

Depreciation Life

The period over which a fixed asset is expected to depreciate until it reaches its salvage value.

Market Value

The ongoing rate at which you can buy or sell an asset or service within the open market.