Which of the Following Statements Is False

question 69

Multiple Choice

Which of the following statements is false?

• A) A serious concern for large corporations is that managers may make large, unprofitable investments.
• B) While overspending on personal perks may be a problem for large firms, these costs are likely to be small relative to the overall value of the firm.
• C) Some financial economists explain a manager's willingness to engage in negative-NPV investments as empire building.
• D) While ownership is often diluted for small, young firms, ownership typically becomes concentrated over time as a firm grows.

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Definitions:

Aggregate Demand

The entirety of consumer and business demand for goods and services in an economy, assessed at an overall price level within a defined time span.

Decrease

A reduction in the quantity, size, or extent of something.

Output Levels

The quantities of goods and services produced by an economy over a specific time period.

Recessionary Gap

A situation where actual economic output is lower than the output that would be achieved at full employment, indicating underutilized resources.