Which of the Following Statements Is Not Correct

question 376

Multiple Choice

Which of the following statements is not correct?

• A)Reducing taxes on interest income might encourage people to save more.
• B)Reducing taxes on interest income might reduce saving.
• C)A price increase will create income and substitution effects that will both always work to reduce consumption of the good.
• D)Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.

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Definitions:

Ozone Depletion Potential (ODP)

Rating of atmospheric gases according to their ability to damage the ozone layer. For instance, CFCs would be rated at a higher ODP than HCFCs.

Refrigerants

Substances used in heating, ventilation, air conditioning, and refrigeration (HVAC/R) systems, responsible for absorbing and removing heat to facilitate cooling or refrigeration.

Cooling Capacity

The amount of heat energy that a cooling system (such as an air conditioner or refrigerator) can remove from a specific area within a certain time period.

Refrigerated Van

A refrigerated van is a vehicle designed with insulation and a cooling system to transport perishable goods at controlled temperatures.