Which of the Following Statements Is CORRECT

question 42

Multiple Choice

Which of the following statements is CORRECT?

• A) sunk costs must be considered if the irr method is used but not if the firm relies on the npv method.
• B) a good example of a sunk cost is a situation where a bank opens a new office, and that new office leads to a decline in deposits of the bank's other offices.
• C) a good example of a sunk cost is money that a banking corporation spent last year to investigate the site for a new office, then expensed that cost for tax purposes, and now is deciding whether to go forward with the project.
• D) if sunk costs are considered and reflected in a project's cash flows, then the project's calculated npv will be higher than it otherwise would be.
• E) an example of a sunk cost is the cost associated with restoring the site of a strip mine once the ore has been depleted.

Identify the roles and responsibilities of the government in a modern free enterprise economy.

Understand the sources of federal and local government revenue and types of expenditures.

Differentiate between direct and indirect taxes and their implications on taxpayers.

Grasp the concept and examples of transfer payments in the context of government spending.

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Definitions:

Influence Impression

The impact or effect an individual's behavior, opinions, or actions have on others' perceptions, decisions, or actions, especially in contexts such as social media or marketing.

The Two-Step Flow Model

A communication theory suggesting that information from the media moves to opinion leaders and then to a wider audience.

Influencers

People who can influence others' buying choices due to their expertise, status, authority, or personal connection with their audience.

Dissemination

The process of spreading information, knowledge, or ideas to a wide audience.