Which of the Following Statements Is Not Correct

question 157

Multiple Choice

Which of the following statements is not correct?

• A)Based on studies of human decision making, most people value fairness.
• B)Based on studies of human decision making, some people's preference are inconsistent over time.
• C)Government intervention is the best remedy for the problems caused by asymmetric information.
• D)Advertising can be an example of a company signaling the quality of its products.

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Definitions:

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point; it measures the risk of incurring a loss.