Which of the Following Is Not Consistent with the Basic

question 155

Multiple Choice

Which of the following is not consistent with the basic postulate of economics that incentives matter?

• A) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
• B) A politician votes against a proposal because most of his constituents oppose it.
• C) People drive less because of higher gas prices.
• D) People buy more milk in response to a reduction in the price of milk.

Identify and classify different types of assets, including fixed and intangible assets.

Differentiate between various financial statements and their purposes.

Calculate cash flow indicators from financial data.

Understand the concept of impairment loss and its calculation.

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Definitions:

Production Function

A formula that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Cost Per Unit

The cost incurred in the production of one unit of a product, including material, labor, and overhead costs.

Marginal Product

The extra output generated by increasing the use of a variable input by one unit, while keeping all other inputs unchanged.

Fertilizer

A substance, either natural or manufactured, that is applied to soil or land to improve fertility and promote the growth of plants.