An Increase in Productivity Will Cause Which of the Following

question 11

Multiple Choice

An increase in productivity will cause which of the following according to the price- setting behaviour of firms?

• A) An increase in the markup set by firms.
• B) An increase in the level of employment protection set by the government.
• C) An increase in the prices set by firms.
• D) An increase in the minimum wage paid by firms.
• E) An increase in the real wage paid by firms.

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Definitions:

Approximate

To approximate means to find a value or answer that is close to the exact one, but not exactly it, often used when an exact solution is not necessary or possible.

Function

A pairing between a selection of inputs and a conglomeration of permissible outputs, where the rule is that each input is directly linked to a unique output.

Logarithm

This refers to the exponent that indicates the power to which a base number is raised to obtain a specific number. It's an inverse operation to exponentiation in mathematics.

Vertical Asymptote

A line that a graph approaches but never touches, typically representing values that are not included in the domain of a function.