Diminishing returns to physical capital means that when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to
What will be an ideal response?
a smaller increase in the marginal product of labor
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Macroeconomic models are
A) never wrong. B) accurate descriptions of the economy. C) simple abstractions of reality. D) consistent with all economic data.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
When the housing bubble occurred it can be attributed to all of the following except:
A. homeowners lack of confidence in the institutions who made the loan to them. B. it became easier to leverage more of a home's value, putting buyers more into debt. C. people expected housing prices to continue to rise. D. the seller of the mortgage had lost incentive to properly assess the risk.
That the migration of black middle and working class families from the ghettos removed the key social constraint against crime is a central thesis of
A. William Julius Wilson. B. Charles Murray. C. Mickey Kaus. D. Frances Fox Piven.