Which of the Following Is Not True

question 177

Multiple Choice

Which of the following is not true?

• A)Economics is the study of the allocation of scarce resources to satisfy unlimited wants for goods and services.
• B)Scarcity is the problem that our wants exceed our limited resources.
• C)Economists assume that self-interest is the motivation behind economic behavior, and so respond in predictable ways to changing circumstances.
• D)Economists believe that it is rational for people to anticipate the likely future consequences of their behavior.
• E)All of the answers are true.

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Definitions:

Absorption Costing

A costing approach that integrates both direct and indirect costs associated with manufacturing into the product's total cost.

Ending Inventory

The value of the goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Variable Costing

A costing method where only variable costs are considered when determining the cost of goods sold, excluding fixed overhead.

Operating Income

The profit produced from a company's regular business operations, excluding non-operating income and expenses like interest and taxes.