Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
• B)Most car loans,mortgages,and some bonds are annuities.
• C)A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
• D)An annuity is a stream of N equal cash flows paid at irregular intervals.

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Definitions:

Marginal Expenditure

The additional cost incurred from purchasing or producing one more unit of a good or service.

Average Expenditure

The average amount of money spent by consumers or firms on a particular good or service.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices.

Input Demand

Refers to the demand for production inputs (like labor and raw materials), driven by the demand for the outputs those inputs produce.