Which Is a Positive Statement

question 21

Multiple Choice

Which is a positive statement?

• A) Government should control the rents charged by owners of apartment buildings.
• B) Low rents are better for a city than high rents.
• C) Housing costs too much.
• D) Owners of apartment buildings ought to be free to charge whatever rent they want.
• E) Low rents restrict the supply of housing.

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Definitions:

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold to customers.

Sales Budget

A detailed projection of anticipated sales, used for planning and managing resources in a business.

Optimistic Sales Budget

A sales budget that is prepared with the expectation of achieving the best-case scenario in sales volume and revenue.

Excessive Inventories

Situation where a company holds a larger quantity of inventory than necessary, which can tie up capital and increase holding costs.