Which of the Following Statements Is True

question 264

Multiple Choice

Which of the following statements is true?

• A) The quality of products sold in black markets tends to be less reliable than the quality of products in legal markets.
• B) For otherwise identical products, the price of products in black markets tends to be higher than in legal markets.
• C) The rate of violence is higher in black markets than in legal markets.
• D) All of the above are true.

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Definitions:

Payback Period

The length of time required to recover the cost of an investment.

Direct Materials

Materials that can be directly linked to the production of a product and represent a substantial portion of the cost.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Annual Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues over a year.