Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) Discouraged workers are a subset of a larger group termed marginally attached workers.
• B) Discouraged workers are counted as unemployed in the official unemployment rate calculation.
• C) A person is considered underemployed if he is working at a job for which his skills far exceed the skills required for his job.
• D) People who are underemployed are not counted as unemployed.

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Definitions:

Capital Investment Analysis

The process of evaluating and selecting long-term investments consistent with the firm's goal of wealth maximization.

Cash Payback Period

the duration required to recover the cost of an investment through cash flows generated by the investment.

Annual Net Cash Inflow

The net amount of cash that flows into a company in a year after all expenses and outflows have been subtracted from total inflows.

Capital Rationing

The process of selecting the most profitable projects to invest in when a company has limited resources or capital available.