An Increase in Total Factor Productivity Causes

question 19

Multiple Choice

An increase in total factor productivity causes

• A) real wages to rise.
• B) labour supply to fall.
• C) the output supply curve to shift left.
• D) real interest rates to rise.
• E) the production function to shift up.

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Definitions:

Electronic Calculators

Electronic devices used for performing mathematical operations, ranging from basic to complex calculations.

Product Line

A group of related products produced by a company, often catering to a specific market or segment.

Unit Product Cost

The total expense involved in manufacturing a single product unit, encompassing direct materials, direct labor, and apportioned overhead costs.

Variable Costing

An accounting method that includes only variable production costs (direct labor, direct materials, and variable overhead) in product costs and expenses fixed overhead as a period cost.