Author Question: The production function is concave in labor because A) the contribution to production of each ... (Read 65 times)

michelleunicorn · **on:** Jun 30, 2018

The production function is concave in labor because

A) the contribution to production of each additional unit of labor decreases.
B) the marginal product of labor is increasing.
C) the marginal product of capital is decreasing.
D) the labor demand is downward sloping.

Question 2

Regarding fiscal policy, the new classical economists

a. are in favor of stability.
b. attempt to avoid excessive and inflationary stimulus.
c. want to avoid erratic government deficit spending.
d. All of the above
e. None of the above