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

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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.         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.

    • 7 years ago
    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
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