An Increase in Total Factor Productivity Shifts the Production Function

question 40

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward and reduces the marginal product of labour.
• B) upwards and increases the marginal product of labour.
• C) downward and reduces the marginal product of labour.
• D) downward and increases the marginal product of labour.
• E) downward and also reduces its slope.

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Definitions:

Encoding Specificity Principle

The theory that memory is improved when information available at encoding is also present at retrieval.

Sensory Store

A very short-term form of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.

Retrieval Cue

A trigger or stimulus that aids the recall of information from memory.

Long-Term Memory

The phase of memory responsible for the storage of information over extended periods, potentially as long as a lifetime.