Which One of the Following Statements Is False

question 58

Multiple Choice

Which one of the following statements is false?

• A)If the indifference curve is steep, the marginal rate of substitution is high.
• B)A low marginal rate of substitution implies a flat indifference curve.
• C)A flat indifference curve implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
• D)A high marginal rate of substitution implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
• E)A high marginal rate of substitution implies a consumer must receive a small amount of good X to compensate for a large decrease in good Y.

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Definitions:

Goodwill Impairment

The decrease in the value of goodwill on a company's balance sheet when the carrying amount exceeds the fair value.

Private Companies

Businesses whose ownership is private, meaning their shares are not traded on public stock exchanges, and often their financial information is not disclosed to the public.

Amortization Expense

The gradual reduction of a debt over time or the allocation of the cost of an intangible asset over its useful life.

Fair Value

The revenue generated from liquidating an asset or cost of moving a liability in a coordinated market operation on the day of measurement.