Which of the Following Is Not Correct

question 156

Multiple Choice

Which of the following is not correct?

• A)Earnings from capital may be paid to households in the form of dividends.
• B)Earnings from capital may be retained by firms to purchase additional capital.
• C)Firms may not pay out all of their earnings to households.
• D)Firms earn the highest profits when the owners of capital receive a value above the marginal product.

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Definitions:

Significance Level

A threshold in statistical hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true.

Test Statistic

A type of statistic used in hypothesis testing, calculated from sample data, to determine the p-value or test the null hypothesis.

T Value

A statistic that is derived from a t-test and is used to determine if there is a significant difference between the means of two groups.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to the calculation of a statistic.