Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) Improving standards of living have been repeatedly demonstrated to require increased energy consumption.
• B) An average house built today requires only half the energy used by a new home in 1974.
• C) For an average home, standby appliances consume up to 25% of the electricity used in a month.
• D) Most potential heat from fuel is lost as waste heat.
• E) All of these are true.

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Definitions:

Adverse Selection

A situation in which asymmetric information leads to the market being dominated by inferior products or by participants who are at a disadvantage.

Moral Hazard

A situation where one party in a transaction has the opportunity to take risks because the costs that those risks entail will not be borne by that party.

Portfolio Risk

The variability of returns from a portfolio of investments.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels individuals derive from consuming goods and services.