An Increase in Total Factor Productivity Shifts the Production Function

question 56

Multiple Choice

An increase in total factor productivity shifts the production function

• A)downward and increases the marginal product of labour.
• B)upward and reduces the marginal product of labour.
• C)downward and reduces the marginal product of labour.
• D)upwards and increases the marginal product of labour.
• E)downward and also reduces its slope.

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Definitions:

Compounded Annually

A method where interest is calculated once a year on the principal and previously accumulated interest.

Perpetuity

A type of annuity that pays a constant amount of money indefinitely, without a maturity date.

Semi-annual Scholarships

Scholarships awarded twice a year, often to support the educational expenses of students.

Compounded Annually

Pertains to the calculation of interest on both the initial principal and the accumulated interest from previous periods, applied once per year.