Which of the Following Statements Is Not True

question 58

Multiple Choice

Which of the following statements is not true?

• A) You should use all of your liquid assets to pay off loans.
• B) Paying off loans is appropriate when the interest rate is relatively high.
• C) Paying off loans is wise when the expected rate you will earn on investments is lower than the interest rate on the loan.
• D) Loan payments you make restrict your spending and saving and may prevent you from achieving financial goals.

Understand the basic concepts of production possibilities curves and opportunity costs.

Analyze the effects of economic growth or decline on the economy's production capabilities.

Identify factors that can cause shifts in the production possibilities frontier (PPF).

Distinguish between efficient, inefficient, and unattainable points on the production possibilities frontier.

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Definitions:

Waterway Pollution

Contamination of rivers, lakes, oceans, and other bodies of water, adversely affecting aquatic ecosystems, human health, and the economy.

Open Access

A policy whereby resources are made available to all, without restrictions, such as in academic publishing where research is freely accessible.

Economic Efficiency

The optimal allocation of resources within an economy, where goods and services are produced and distributed in a manner that maximizes societal welfare.

Sufficient Competition

A market situation where there are enough participants to ensure efficient and competitive pricing.