Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) Project externalities are direct effects of the project that may increase of decrease the profits of other business activities of the firm.
• B) Incremental earnings are the amount by which the firm's earnings are expected to change as a result of the investment decision.
• C) The average selling price of a product and its cost of production will generally change over time.
• D) Any money that has already been spent is a sunk cost and is therefore irrelevant in the capital budgeting process.

---

Definitions:

Priming

The process by which recent experiences increase the accessibility of a schema, trait, or concept, influencing responses.

Weber's Law

A principle in psychology stating that the smallest perceptible change in a stimulus is proportional to the magnitude of the original stimulus.

Subliminal Audio

Audio stimuli played below the conscious threshold of hearing, designed to influence behavior or emotions without the listener's conscious awareness.

Sensory Transduction

The conversion of a sensory signal from the environment into an electrical signal in the nervous system.