If a in the Production Function Y = a •

question 52

Multiple Choice

If A in the production function Y = A • F(K,L) rises, then:

• A)output rises for any level of K and L.
• B)the marginal product of labour rises.
• C)the marginal product of capital rises.
• D)all of the above.

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Definitions:

Bad Decision

A choice that leads to negative or undesired outcomes, often resulting from inadequate information, poor judgement, or a lack of foresight.

Attractive Alternatives

Options that are appealing or desirable in comparison to others available, often considered in decision-making processes.

Weighing Facts

The process of assessing the importance, relevance, or truth of information or evidence before making a decision or judgment.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions, leading them to change their attitudes, beliefs, or actions to reduce the dissonance.