Which of the Following Is Not a Criticism of Positive

question 17

Multiple Choice

Which of the following is not a criticism of Positive Accounting Theory?

• A) It is based on the assumption that all action is driven by wealth maximisation
• B) It is not value-free
• C) It has developed little in the past thirty years
• D) Its claims cannot be objectively verified

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, freedom of entry and exit, and perfect information.

VMPL

The value of the marginal product of labor, which is the additional value created from an increase in labor input.

Equilibrium Market Wage

The wage rate at which the quantity of labor supplied and the quantity of labor demanded are equal.

Bricklayers

Tradespeople who lay bricks, concrete blocks, and other types of masonry materials to construct or repair walls, partitions, and other structures.