EXAM 2 EXAM 2 Econ 2010 Section 9 Fall 2000 Multiple Choice. Select the best answer and mark the corresponding letter on your answer sheet. The natural rate of unemployment is zero percent. Human capital, natural resources, physical capital, and technological knowledge are a. determinants of productivity.
Education is an example of a. investment in human capital.
Human capital is a. the stock of equipment and structures that is used to produce goods and services. One way that government can encourage growth and, in the long run, raise the economy's standard of living is by encouraging a. conservation of resources. The catch-up effect is the idea that a. it is easier for a country to grow fast if it starts out relatively poor. Diminishing returns is the notion that a. as the stock of capital ages, the extra output produced decreases. Institutions in the economy that help to match one person's saving with another person's investment are collectively called a. the Federal Reserve.