In Response to an Increase in Total Factor Productivity

question 20

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

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Definitions:

Condensation

The process by which gas transforms into liquid, often observed when warm air meets a cool surface.

Hydrolysis

A chemical reaction involving the breaking of a bond in a molecule using water.

Catalyzed

Accelerated or initiated by the presence of a catalyst, a substance that increases the rate of a chemical reaction without undergoing any permanent chemical change.

Functions of Proteins

The functions of proteins include acting as enzymes, hormones, and structural components, facilitating biochemical reactions, and playing roles in immune response and transport.