In Response to an Increase in Total Factor Productivity

question 55

Multiple Choice

In response to an increase in total factor productivity

• A) both the substitution effect and the income effect suggest that hours worked should increase.
• B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease.
• C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase.
• D) both the substitution effect and the income effect suggest that hours worked should decrease.
• E) the net effect is a reduction in the welfare of the representative consumer.

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Definitions:

Televised Violence

Televised violence refers to the portrayal of violent acts in television programming, which has been a point of concern regarding its potential influence on real-world aggression and desensitization to violence.

Aggressive

Exhibiting behavior that aims to hurt or intimidate someone physically or psychologically.

Solomon Asch Experiment

A series of studies directed by psychologist Solomon Asch that demonstrated the power of conformity in groups, where individuals often agreed with an incorrect majority opinion.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, potentially influenced by pressure, real or imagined.