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.

---

Definitions:

Time-Released

Refers to a method of delivering a substance (such as medication) in a manner that allows it to be released slowly and steadily into the bloodstream over time.

Agonist

A chemical or drug that binds to receptors in the body and activates them to produce a biological response.

Stimulates

To encourage something to grow, develop, or become active.

Pharmacodynamic

The branch of pharmacology concerned with the effects of drugs and the mechanism of their action in the body.