Which of the Following Statements Is Most Correct

question 108

Multiple Choice

Which of the following statements is most correct?

• A) Sunk costs should be ignored in capital budgeting.
• B) Opportunity costs should be ignored in capital budgeting.
• C) Externalities should be ignored in capital budgeting.
• D) Answers a,b,and c are all correct.
• E) Answers a,b,and c are all incorrect.

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Definitions:

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate, in a given period.

Return on Capital

A measure of a company's profitability, calculated as the profit generated by its capital investment, often expressed as a percentage.

Immigration

Establishing permanent residence in a nation other than the one where you originally belong.

Productivity

The measure of how efficiently production inputs, such as labor and capital, are converted into outputs, i.e., goods and services.