The concept of "convergence" in the Solow model refers to:  A. The tendency of economies with higher initial capital levels to grow faster  B. The convergence of population growth rates across countries  C. The diminishing returns to labor in the long run  D. The convergence of savings rates across countries

According to the Solow model, an increase in the savings rate will lead to:  A. Lower steady-state capital stock  B. Higher steady-state output per capita  C. Faster population growth  D. Decreased labor productivity

The main factor that leads to diminishing returns to capital in the Solow model is:  A. Technological progress  B. Labor force participation  C. Population growth  D. The capital-output ratio

Select the scenario that will decrease the steady-state level of capital per worker in the Solow model with technological progress. a. A decrease in the population growth rate due to a sharp fall in immigration. b. A decrease in the saving rate due to better investment incentives. c. An increase in the saving rate due to a reduction in consumers’ marginal propensity to consume. d. A decrease in the depreciation rate due to improved maintenance of capital goods.

The Solow model assumes that the rate of technological progress is:  A. Constant over time  B. Decreasing as the economy grows  C. Dependent on the level of government investment  D. Unrelated to economic growth

Suppose a country’s population grows by 1% per annum, and its labour efficiency grows by 2% per annum. Then, according to the Solow model with technological progress, the steady-state growth rate of capital per effective worker is