Which of the Following Statements Is False

question 163

Multiple Choice

Which of the following statements is false?

• A)One of the basic principles capitalism is based on is to "trust no one."
• B)To have real competition in a market economy no one business should be able to have any influence over price.
• C)A basic trade-off exists between the goals of equity and efficiency for a society.
• D)The forces of supply and demand will NOT automatically lead to an equitable distribution of income.

Discern the implications of changes in the price level for exports, imports, and net exports.

Understand the concept of equilibrium in the context of aggregate expenditure and real GDP.

Grasp the nature of investment, including its autonomy from the level of saving.

Understand the concept of the risk-reward relationship and how it applies to various investments.

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Definitions:

Real Income

Real income refers to income adjusted for the effects of inflation, reflecting the true purchasing power of the money earned by individuals or entities.

Factors of Production

The resources used in the production of goods and services, which typically include land, labor, capital, and entrepreneurship.

Goods and Services

The output of economic activities, where goods are tangible products and services are intangible activities provided to consumers.

GDP Accounts

GDP accounts provide a comprehensive overview of a country's economic activity by measuring the total market value of all goods and services produced in a specific period.