Which of the Following Statements Is False

question 69

Multiple Choice

Which of the following statements is false?

• A) Government can remove individuals from a prisoner's dilemma setting and make them better off.
• B) In a prisoner's dilemma setting,it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced.
• C) As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting,then government has made the individuals better off.
• D) Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting,the government can make both persons better off,both persons worse off,or one person better off and the other person worse off.

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Definitions:

Accrual

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Net Cash Inflow

The difference between all cash received and all cash spent by a company during a specific period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Loans Receivable

Financial assets representing money lent by an entity to a third party, for which the lender expects repayment.