Which of the Following Statements Are Not True

question 26

Multiple Choice

Which of the following statements are not true?

• A) Fringe benefits include health insurance and pension plans.
• B) Workers all value fringe benefits the same.
• C) Wage benefits are predicted to lie along a line with a slope of -1.
• D) Employers are indifferent between any equally costly wage benefit combination.
• E) Fringe benefits arise from a voluntary agreement between workers and employers.

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Definitions:

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.