Which of the Following Statements Is Not True

question 209

Multiple Choice

Which of the following statements is not true?

• A)Our government alters how resources are allocated in the economy by taxing, spending and issuing regulations.
• B)The price mechanism will work best if there are a limited number of firms in each industry.
• C)Lack of the provision of public goods is considered a market failure.
• D)Not everything produced by the public sector is a public good.

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Definitions:

Percent of Sales Method

A financial analysis tool used to forecast future figures by assuming they will be a fixed percentage of sales volume.

Bad Debt Expense

Bad debt expense is an estimate of the uncollectible amounts for credit sales or loans extended, recognized as an expense in the income statement.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Receivable

Money owed by customers to a company for goods or services provided on credit.