Economics 372 Assignment 2 ___ 1. The marginal product of capital _____ as additional units of capital are added, holding the labor force constant, causing the production function to become _____. a. increases; steeper c. decreases; steeper b. inc
Fin-Acc-BossEconomics 372 Assignment 2
___ 1. The marginal product of capital _____ as additional units of capital are added, holding the labor force constant, causing the production function to become _____.
a. increases; steeper c. decreases; steeper
b. increases; flatter d. decreases; flatter
___ 2. Investment in human capital occurs when:
a. firms provide on-the-job training.
b. workers receive on-the-job training.
c. workers attend classes at colleges or universities.
d. all of the above are correct.
___ 3. If Roberta deposits $1,000 in an account that pays 10% interest, compounded annually, she will have approximately _____ at the end of 4 years.
a. $1,040 c. $1,464.10
b. $683 d. $1,014.64
___ 4. Ceteris paribus, an increase in the real rate of interest leads to a(n) _____ in the quantity of loanable funds demanded by borrowers and a(n) _____ in investment spending.
a. increase; decrease c. decrease; increase
b. increase; increase d. decrease; decrease
___ 5. If the economy is operating at full employment, then:
a. the unemployment rate is zero percent.
b. structural and frictional unemployment have been eliminated.
c. the unemployment rate is equal to the natural rate.
d. cyclical unemployment is greater than the sum of structural and frictional
unemployment.
___ 6. Official unemployment statistics are more likely to understate the true unemployment problem when:
a. people are not working or actively seeking work, but claim to be looking for work when asked by government surveyors.
b. underemployed workers are counted among the employed and there are discouraged workers.
c. the Bureau of Labor Statistics is unable to contact some of the households randomly selected for the survey.
d. unemployment is frictional rather than structural in nature.
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