1. The relationship between the quantity of output produced and the quantity of inputs used to produce it is called the __________. 2. Which of the following would be counted as part of the stock of...

1. The relationship between the quantity of output produced and the quantity of inputs used to produce it is called the __________.

2. Which of the following would be counted as part of the stock of capital?

a. copy machines in a photocopying shop

b. lettuce on a salad bar

c. a newly discovered mineral deposit

d. all of the above

3. A decrease in the stock of capital shifts the production function __________ (upward/downward). Show this with a graph.

4. A decrease in human capital is likely to shift the production function __________ (upward/-downward).