Compared to workers in most of the world, U. workers have: Select one: an unlimited supply of physical capital. roughly the same amount of physical…

1. Compared to workers in most of the world, U.S. workers have:

Select one:

a. an unlimited supply of physical capital.

b. roughly the same amount of physical capital.

c. a relatively large amount of physical capital.

d. a relatively small amount of physical capital

2. Which of the following would cause an increase in firms’ willingness and ability to borrow money, i.e. shift the demand for loanable funds to the right?

Select one:

a. if the economy falls into recession

b. if the government increase business taxes

c. if firms lowered the profit expectations base on changes in household spending

d. if firms become more optimistic about business conditions

3. In which of the following cases would the capital stock of a nation definitely increase:

Select one:

a. when the rate of investment is positive

b. when people increase their savings

c. when the size of the output increases

d. when the rate of investment is greater than the rate of depreciation

4.According to the law of diminishing returns, as the amount of one input, like capital increases, holding all else constant:

Select one:

a. the amount of labor employed will decrease

b. the amount of investment will decrease

c. output will increase at a decreasing rate

d. the output falls by and equal amount

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