Author Question: As the capital stock increases, ________. This means that the marginal product of capital (MPK) ... (Read 72 times)

a0266361136 · **on:** Jun 30, 2018

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

Question 2

In the DMP model, an increase in the unemployment insurance benefit does not, under any circumstances

A) increase the vacancy rate.
B) increase the unemployment rate.
C) reduce labor market tightness.
D) reduce the size of the labor force.