One way to explain the convexity of isoquants is to say that
A) as labor increases and capital decreases, MPL rises while MPK falls.
B) as labor increases and capital decreases, MPL falls while MPK rises.
C) as labor increases and capital decreases, MPL and MPK both fall.
D) as labor increases and capital decreases, MPL and MPK both rise.
B
Economics
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Workers who are underemployed are:
A) not counted in the labor force. B) considered as employed. C) considered as discouraged workers. D) considered as unemployed.
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Cyclical unemployment is negative when
A. the actual unemployment rate exceeds the natural rate. B. the economy is at the peak of a business expansion. C. the inflation rate is negative. D. the inflation rate is positive.
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