An Increase in Total Factor Productivity Shifts the Production Function

question 22

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward and increases the marginal product of labour.
• B) upward and decreases the marginal product of labour.
• C) downward and increases the marginal product of labour.
• D) downward and decreases the marginal product of labour.
• E) upward and increases the marginal product of capital.

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Definitions:

Federal Withholding

The portion of an employee's wages that is withheld by the employer for the purpose of paying federal income taxes.

Supplemental Wages

Additional compensation received beyond one's regular wages, such as bonuses, commissions, or overtime pay, often subject to different tax withholding rates.

FICA Taxes

Taxes levied on both employees and employers to fund Social Security and Medicare.

SUTA Taxes

State Unemployment Tax Act taxes are state unemployment taxes employers are required to pay to provide funds for paying unemployment compensation to laid-off employees.