As the capital stock increases, ________. This means that the marginal product of capital (MPK) ________
A) the slope of the production function falls; declines
B) the slope of the production function increases; goes up
C) the slope of the production function falls; goes up
D) the slope of the production function increases; declines
E) none of the above
A
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All of the following are possible private-sector adjustments to an increase in the government's budget deficit except
A) increasing private savings. B) decreasing investment. C) decreasing expenditures on transfer programs. D) increasing the trade deficit by increasing imports and/or decreasing exports.
One In the News article titled "Perceptions of Government Failure" indicates that people think that the government is not very trustworthy when it comes to solving domestic issues. If this is true, this is an example of
A. The free-rider dilemma. B. The problem of externalities. C. Market failure. D. Government failure.
The table shows data reported by Statistics Canada for 1999. In 1999, the unemployment rate was
A) 1.2 million. B) 5.0 percent. C) 7.6 percent. D) 7.9 percent. E) 6.1 percent.
Which of the following is most likely to be observed in a community where legal ceilings are imposed on residential rents?
A) Landlords will do a better job of property maintenance. B) People moving into the community will have difficulty locating residential space to rent. C) Poor people will be able to find adequate housing. D) Tenants will reduce their use of housing space. E) The people most in need of housing will be able to obtain the space they want.