6. Assume that there are decreasing returns to capital and labour and constant returns to scale. Suppose that inputs of both capital and labour decrease by 5%. Given this information, we know that output (Y) will,

A) not change

B) decrease by 5%

C) decrease by less than 5%

D) will decrease by more than 5% but less than 10%

7. Labor productivity is represented by which of the following?

A) the ratio of output to employment B) workers per unit of capital

C) capital per worker

D) the ratio of output to population

E) the ratio of output to the labor force

8. The Beveridge curve will shift downward (toward the origin) if:

A) Vacancies are increasingly concentrated in given sector of the economy. B) Vacancies are increasingly concentrated in a geographical region.

C) Information about job vacancies improves.

D) Unemployment benefits become more generous.