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Name: _ Date: _1.The efficiency of labor is a term that does not reflect the:A)high output that comes from labor cooperating with a large amount of capital.B)health of the labor force.C)education of the labor force.D)skills of the labor force acquired through on-the-job training.2.The efficiency of labor:A)is the marginal product of labor.B)is the rate of growth of the labor force.C)includes the knowledge, health, and skills of labor.D)equals output per worker.3.The number of effective workers takes into account the number of workers and the:A)amount of capital available to each worker.B)rate of growth of the number of workers.C)efficiency of each worker.D)saving rate of each worker.4.The rate of labor-augmenting technological progress (g) is the growth rate of:A)labor.B)the efficiency of labor.C)capital.D)output.5.Assuming that technological progress increases the efficiency of labor at a constant rate is called:A)endogenous technological progress.B)the efficiency-wage model of economic growth.C)labor-augmenting technological progress.D)the Golden Rule model of economic growth.6.If the labor force is growing at a 3 percent rate and the efficiency of a unit of labor is growing at a 2 percent rate, then the number of effective workers is growing at a rate of:A)2 percent.B)3 percent.C)5 percent.D)6 percent.7.In a steady-state economy with a saving rate s, population growth n, and labor-augmenting technological progress g, the formula for the steady-state ratio of capital per effective worker (k*), in terms of output per effective worker (f(k*), is (denoting the depreciation rate by d):A)sf(k)/(d + n + g).B)s/(f(k)( d + n + g).C)f(k)/(s)( d + n + g).D)(s f(k)/( d + n + g).8.In the Solow growth model with population growth and technological change, the break-even level of investment must cover:A)depreciating capital.B)depreciating capital and capital for new workers.C)depreciating capital and capital for new effective workers.D)depreciating capital, capital for new workers, and capital for new effective workers.9.In the Solow growth model, the steady-state growth rate of output per effective worker is _, and the steady-state growth rate of output per actual worker is _.A)the sum of the rate of technological progress plus the rate of population growth; zeroB)zero; the rate of technological progressC)zero; zeroD)the rate of technological progress; the rate of population growth10.In the Solow growth model with population growth and technological change, the steady-state growth rate of income per person depends on:A)the rate of population growth.B)the saving rate.C)the rate of technological progress.D)the rate of population growth plus the rate of technological progress.11.In a steady-state economy with population growth n and labor-augmenting technological progress g, persistent increases in standards of living are possible because the:A)capital stock grows faster than does the labor force.B)capital stock grows faster than does the number of effective workers.C)rate of depreciation constantly decreases.D)saving rate constantly increases.12.According to the Solow model, persistently rising living standards can only be explained by:A)population growth.B)capital accumulation.C)saving rates.D)technological progress.13.In the Solow model with technological change, the Golden Rule level of capital is the steady state that maximizes:A)output per worker.B)output per effective worker.C)consumption per worker.D)consumption per effective worker.14.With population growth at rate n and labor-augmenting technological progress at rate g, the Golden Rule steady state requires that the marginal product of capital (MPK):A)net of depreciation be equal to n + g.B)net of depreciation be equal to the depreciation rate plus n + g.C)plus n be equal to the depreciation rate plus g.D)plus g be equal to the depreciation rate plus n.15.In the Solow model with technological progress, the steady-state growth rate of capital per effective worker is:A)0.B)g.C)n.D)n + g.16.In a Solow model with technological change, if population grows at a 2 percent rate and the efficiency of labor grows at a 3 percent rate, then in the steady state, output per effective worker grows at a _ percent rate.A)0B)2C)3D)517.In a Solow model with technological change, if population grows at a 2 percent rate and the efficiency of labor grows at a 3 percent rate, then in the steady state, output per actual worker grows at a _ percent rate.A)0B)2C)3D)518.In a Solow model with technological change
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