Which of the Following Statements Is False

question 8

Multiple Choice

Which of the following statements is false?

• A) In general, the IRR rule works for a stand-alone project if all of the project's positive cash flows precede its negative cash flows.
• B) There is no easy fix for the IRR rule when there are multiple IRRs.
• C) The payback rule is primarily used because of its simplicity.
• D) No investment rule that ignores the set of alternative investment alternatives can be optimal.

---

Definitions:

Economy Changing

Refers to the dynamics and shifts occurring over time within an economic system, affecting growth, employment, and resources distribution.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate, in a given time period.

Firm's Product

The goods or services produced by a firm, designed to meet consumer needs or desires, distinguishing the firm in its market.

Frictional Unemployment

Short-term unemployment that arises from the process of matching workers with jobs.