Which Statement Is False

question 103

Multiple Choice

Which statement is false?

• A)Residential home building fluctuates considerably from year to year.
• B)Investment is the most volatile sector in our economy.
• C)Gross investment is larger than net investment.
• D)Inventory investment can be negative.
• E)None is false

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Definitions:

Pretax Income

The income that a company earns before any taxes are deducted, representing the profitability of the company before government intervention.

Break-even Point

The level of production or sales at which total costs equal total revenues, resulting in no profit or loss.

Fixed Costs

Costs that are constant regardless of the volume of goods or services produced by a company, including lease payments and maintenance expenditures.

Variable Costs

Disbursements that are contingent upon the magnitude of production or sales transactions.