Which of the Following Is Not a Reason Why Some

question 25

Multiple Choice

Which of the following is not a reason why some production continues in households?

• A)Some household production requires many specialized resources
• B)The opportunity cost of household production has decreased over time
• C)Household production avoids taxes
• D)There have been important technological advances in household production
• E)Some households prefer the ability to control production

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Definitions:

Short-term Creditors

refers to entities or individuals that lend money or extend credit for short periods, typically less than a year, including suppliers and banks.

Liquidity

A measure of how easily assets can be converted into cash without significant loss of value, indicating the ability of an entity to meet its short-term obligations.

Price-Earnings Ratio

A measurement that contrasts a firm's stock price with its earnings per share to determine if its shares are valued appropriately.

Dividends

Distributions of earnings to stockholders; an account representing the distribution of a corporation’s earnings to stockholders.