Investment in human capital
A. is not comparable to other investments in any way since human capital is embodied in the person.
B. is quite different from and has a much lower return than investment in physical capital.
C. is just like investment in physical capital but has a much greater return than do other investments.
D. is just like investment in physical capital and has a return similar to that earned from other investments.
Answer: D
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If labor and capital are substitutes in production, then an increase in the amount of capital will
a. reduce the total product associated with each quantity of labor. b. decrease the marginal product of labor. c. increase the marginal product of labor. d. have no effect on labor productivity.
The market structure of oligopoly is when
A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of a differentiated product. D) there are many producers of a homogeneous product.
Which of the following increase when the Fed makes open market purchases?
a. currency and reserves b. currency but not reserves c. reserves but not currency d. neither currency nor reserves
The diagram below shows the production possibilities frontier (PPF) for a country that produces guns (G) and butter (B). Most people in the country prefer guns, so in the absence of international trade, point A represents the combination of G and B that maximizes welfare. The slope of the PPF at point A is equal to -2. 
Over the long run, do you think this country would be better off by shifting its production towards guns or butter? Please identify the most efficient production point in the PPF with trade. What would be the ratio of the prices at that point?
What will be an ideal response?