The general message of the full disclosure principle is that: a. information is symmetric. b. information is costly to fake. c.
producers should offer lifetime warranties for low quality products. d. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one.
Based on financial and accounting principles, the general message of the full disclosure principle is that "<u>the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."</u>
This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.
This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.
Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.
Hence, in this case, it is concluded that the correct answer is option D.
The Gross Domestic Product or GDP represents the overall market value of all the goods and services a country produces and it measures the size of the economy. The GDP is determined with the following formula:
We can expect to see a large change in the quantity demanded for Good A.
<u>Explanation:
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As the price change in the price of good B is inelastic, it is but clear that the price of good B would not show any fluctuations even if there is an increase or decrease in the demand for good B.
As the price of good B is not subject to decrease in the near future, it can be expected that the demand for good A would exhibit a sudden rise.
