11. In a steady state A. no hiring or firings are occurring B. the number of people...

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11. In a steady state

A. no hiring or firings are occurring

B. the number of people finding jobs equals the number of people losing jobs

C. the number of people finding jobs exceeds the number of people losing jobs

D. the number of people losing jobs exceeds the number of people finding jobs

12. Sectoral shifts

A. lead to wage rigidity

B. explain the payment of efficiency wages

C. depend on the level of the minimum wage

D. make frictional employment inevitable

13. The Solow growth model describes

A. how output is determined at a point in time

B. how output is determined with fixed amounts of capital and labor

C. how saving, population growth, and technological change affect output over time

D. the static allocation, production, and distribution of the economy's output

14. In the Solow growth model, the assumption of constant returns to scale means that

A. all the economies have the same amount of capital per worker

B. the steady-state level of output is constant regardless of the number of workers

C. the saving rate equals the constant rate of depreciation

D. the number of workers in an economy does not affect the relationship between output per worker and capital per worker

15. Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production function in both economies exhibit diminishing marginal product of capital. An extra unit of capital per worker increases output per worker

A. more in Highland

B. more in Lowland

C. by the same amount in Highland and Lowland

D. in Highland, but not in Lowland