24) Most economists believe that convergence of GDP per capita between developed nations and between developing and developed nations. 24) A) has occurred; has not occurred B) has occurred; has occurred C) has not occurred; has occurred D) has not occurred; has not occurred 25) Suppose that for a given firm the increase in output resulting from the last worker hired is less than the increase in output of the previous worker hired. This is an example of: 25) A) constant returns. B) diminishing returns. C) increasing return. D) capital deepening. 26) Which of the following uses of tax revenues collected by the government leads to increased capital deepening? 26) A) Social Security payments B) higher salaries for members of Congress C) fighting a war D) none of the above 27) Economists use the term technological progress to refer to: 27) A) an event that allows the economy to operate more efficiently by producing less outputs without using any more inputs. B) an event that allows the economy to operate less efficiently by producing more outputs without using any more inputs. C) an event that allows the economy to operate more efficiently by producing more outputs without using any more inputs. D) an event that allows the economy to operate more efficiently by producing more outputs by using more inputs. 28) Suppose the growth rate of GDP in the U.S. is 5.2%. If 3.0% and 2.2% of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is: 28) A) 0%. B) 3.0% C) 1.2% D) 2.2% 29) Which of the following is considered by economists to be a possible explanation for the slowdown in labor productivity in the U.S.? 29) A) less spending on infrastructure B) decreases in the level of education of the workforce C) lower levels of investment spending D) all of the above TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 30) If a country runs a trade deficit to finance increased current consumption, it will have to reduce consumption in the future to pay back its borrowings. 30) MULTIPLE CHOICE, Choose the one alternative that best completes the statement or answers the question. 31) Which of the following is a problem with the price system that can lead to fluctuations in output? 31) A) Prices can be slow to adjust. B) The price system works silently in the background. C) Prices may be flexible. D) all of the above