Which of the Following Statements Is FALSE

question 96

Multiple Choice

Which of the following statements is FALSE?

• A) A consumer has only one indifference curve.
• B) A consumer possesses a preference map.
• C) An indifference curve is a curve that shows the combination of goods among which a consumer is indifferent.
• D) The marginal rate of substitution is equal to the magnitude of the slope of the indifference curve.
• E) Diminishing marginal rate of substitution means that the marginal rate of substitution decreases as more of the good is consumed.

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Definitions:

Cash Assets

Assets in the form of cash or items that can be quickly converted to cash without significant loss of value.

Prior Period Adjustment

Corrections of errors or omissions in the financial statements of previous periods to accurately reflect past financial performance.

Retained Earnings

Retained earnings are the portion of a business's profits not distributed as dividends to shareholders but retained by the business for reinvestment.

Par Stock

The nominal or face value assigned to a share of stock, as stated in the corporate charter.