• All answers are to be typed, including any calculations.
• Answers should be given in a paragraph form that provides a thorough explanation. A one sentence answer is not adequate. Even in the case of calculations, they should be explained.
• Graphs are to be neatly hand drawn.
• Graphs are to be clearly labeled
• Graphs are to be inserted into the paragraph of the answer

1. Chapter 11 discusses human capital. In your own words how would you define it? Do you believe human capital is related to technology? Why or why not?
2. My friend, Mike, is a CPA and owns his own tax business. During tax season, he hires additional workers.Would you expect Mike's office to experience diminishing marginal product of labor? Would you expect diminishing marginal product of capital? Why or why not?
3. When computers were first introduced in production, what affect do you think they had on labor productivity? Explain and illustrate this effect on the long-run equilibrium levels of output and the price level.
4. Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an hour to $15. What affect will this have on the unemployment rate for low skilled workers? How is this likely to impact equilibrium output and the price level in the short run?