An Increase in Total Factor Productivity Shifts the Production Function

question 42

Multiple Choice

An increase in total factor productivity shifts the production function

• A)downward, and also changes its slope.
• B)upward, but does not change its slope.
• C)downward, but does not change its slope.
• D)upward, and also changes its slope.
• E)upward, but reduces the marginal product of labour.

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Definitions:

Predicted

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Biological Basis

The underlying physiological and genetic factors that contribute to an individual's characteristics, behaviors, or conditions.

Eysenck

Refers to Hans Eysenck, a psychologist noted for his work on personality theory and the biological basis of personality.

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