Explain how an increase in human capital changes labor productivity. Do diminishing returns arise? Provide an example of an increase in human capital. An increase in human capital labor productivity and the diminishing returns to capital. 2:) A. increases; does not eliminate C) B. decreases; does not eliminate C) c. decreases; eliminates 2:) D. increases; sometimes eliminates and sometimes does not eliminate C) E. increases; eliminates An example of an increase in human capital is C) A. you work more hours at your part-time job C) B. your labor productivity increases 2:) C. attending college C) D. your college buys more computers In the graph, draw a productivity curve. Label it PCO. Draw a point to show real GDP per hour of labor when capital per hour of labor is $120. Label it 1. Then illustrate the effect of an increase in human capital. Draw eithera new productivity curve labeled PC1 or an arrow along the curve showing the direction of change. Draw a point to show the real GDP per hour of labor when capital per hour of labor is $120. Label it 2. Real GDP per hour of labor (2012 dollars) 32 28 24 20 16 12 0 4O 80 120 160 200 240 Capital per hour of labor (2012 dollars) >>> Draw only the objects specied in the question. First Call, Inc. is a wireless service provider. It plans to build an assembly plant that costs $12 million if the real interest rate is 7 percent a year. If the real interest rate is 6 percent a year. First Call will build a larger plant that costs $14 million. And if the real interest rate is 8 percent a year, First Call will build a smaller plant that costs $10 million. Draw points to show the quantity of loanable funds demanded when the real interest rate is 1) 8 percent a year. Label the point 1. 2) 7 percent a year. Label the point 2. 3) 6 percent a year. Label the point 3. Draw First Call's demand for loanable funds curve through the points. Label it. 8.5 Real interest rate (percent per year) 8.0 7.5 7.0 6.5 6.0 5.5 9 10 11 12 13 14 15 Loanable funds (millions of 2012 dollars) >>> Draw only the objects specied in the question. 99