Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A) Worldwide, no countries are catching up to the United States with respect to GDP per capita.
• B) Income distributions have become less equal in the United States in the past 30 years.
• C) Higher taxes tend to reduce the incentive to work productively and innovate.
• D) The poverty rate measures the percentage of people living in households with incomes below the poverty line.

---

Definitions:

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in compiling financial statements.

LIFO Method

"Last In, First Out," an inventory accounting method where the most recently acquired items are assumed to be sold first.

Journal Entries

The individual records of financial transactions in a company's accounting system.

Cost of Goods Sold

An accounting term for the direct expenses related to producing the goods sold by a company, including materials and labor.