Order instructions
__ 1. The marginal product of capital _____ as additional units of capital are added, holding the labor force constant, causing the production function to become _____.
- increases; steeper c. decreases; steeper
- increases; flatter d. decreases; flatter
___ 2. Investment in human capital occurs when:
- firms provide on-the-job training.
- workers receive on-the-job training.
- workers attend classes at colleges or universities.
- 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.
- $1,040 c. $1,464.10
- $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.
- increase; decrease c. decrease; increase
- increase; increase d. decrease; decrease
___ 5. If the economy is operating at full employment, then:
- the unemployment rate is zero percent.
- structural and frictional unemployment have been eliminated.
- the unemployment rate is equal to the natural rate.
- 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:
- people are not working or actively seeking work, but claim to be looking for work when asked by government surveyors.
- underemployed workers are counted among the employed and there are discouraged workers.
- the Bureau of Labor Statistics is unable to contact some of the households randomly selected for the survey.
- unemployment is frictional rather than structural in nature.
