Which of the Following Statements Is False

question 108

Multiple Choice

Which of the following statements is false?

• A)Capital depreciates over time.
• B)As the capital stock decreases, the marginal physical product of capital rises.
• C)If the return on capital is less than the price of credit, a firm will not borrow funds to invest in capital.
• D)If the return on capital is greater than the price of credit, then the price of credit must be greater than the price for loanable funds.

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Definitions:

Delaying Reinforcement

A behavior modification technique that involves the delay of reward following a desired behavior, which can influence the strength and frequency of the behavior.

Diathesis-Stress Theory

A psychological framework suggesting that mental disorders develop from a vulnerable predisposition combined with stressful environmental factors.

Rejecting Mother Model

A theory in developmental psychology that explores the effects of a mother's rejection on a child's emotional development.

Collective Unconscious Theory

Carl Jung's concept that posits the existence of a shared, inherited reservoir of memories from our ancestors.