The marginal product of capital (MPK) measures ________
A) by how much output increases for each additional unit of capital
B) by how much capital increases for each additional unit of output
C) by how much capital increases for each additional unit of labor
D) by how much total factor productivity increases for each additional unit of capital
E) none of the above
A
You might also like to view...
Critically evaluate the following statement. "Short-run costs curves must be downward-sloping because after all labor is increasingly more productive."
What will be an ideal response?
New home construction is included in the consumption component of GDP
a. True b. False Indicate whether the statement is true or false
In a fractional-reserve banking system, an increase in reserve requirements
a. increases both the money multiplier and the money supply. b. decreases both the money multiplier and the money supply. c. increases the money multiplier, but decreases the money supply. d. decreases the money multiplier, but increases the money supply.
Which of the following is assumed in time series regression?
A. There is no perfect collinearity between the explanatory variables. B. The explanatory variables are contemporaneously endogenous. C. The error terms are contemporaneously heteroskedastic. D. The explanatory variables cannot have temporal ordering.