Which of the Following Statements Draws a False Conclusion

question 25

Multiple Choice

Which of the following statements draws a false conclusion?

• A) Life expectancy in an average African country is lower than in an average European country; therefore Europeans can expect to outlive Africans.
• B) Nations that currently produce no capital goods, and whose inhabitants are hungry, risk famine with internally funded capital investments.
• C) Some African nations have substantially more food and capital investment than others; therefore, their standard of living is higher.
• D) Population reduction policies, if effective, can improve the nation's wealth by increasing real per capita GDP.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs of goods sold, indicating the amount available to cover fixed costs and generate profit.

Trendy Fashion Apparel

Clothing items that are currently in style and popular among consumers.

South Region

Typically refers to the southern part of a country or area, often characterized by distinct cultural, economic, or climatic conditions.

Variable Costing

An accounting approach where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.