12. According to the theory of efficiency wages, Multiple-Choice (2 Points) A. right-to-work laws reduce the bargaining power of unions. O B. sectoral shifts are the main source of frictional unemployment. O C. an excess supply of labor puts downward pressure on wages. O D. firms may find it profitable to pay above equilibrium wages. 13. What is the definition of net capital outflow(NCO)? Multiple-Choice (2 Points) A. The purchase of foreign assets by domestic residents plus the purchase of domestic assets by foreigners. O B. The purchase of foreign assets by domestic residents divided by the purchase of domestic assets by foreigners. C. The purchase of foreign assets by domestic residents times the purchase of domestic assets by foreigners. D. The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners. -power parity says that higher