A firm possesses too much capital if ________
A) the real rental cost of capital is equal to the marginal product of capital
B) the real rental cost of capital is less than the marginal product of capital
C) its investment spending exceeds its consumption outlays
D) the real rental cost of capital is more than the marginal product of capital
D
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A hypothesis in an economic model is a statement that ________ about an economic variable
A) is correct B) is incorrect C) may be either correct or incorrect D) can not be proven either correct or incorrect
A common criticism of government programs that are designed to assist the poor is that
a. those who receive assistance rarely meet the criterion for eligibility. b. the majority of those below the poverty line refuse to accept government assistance. c. they create incentives for people to become "needy." d. they typically account for a majority of annual government expenditures.