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)upward and increases the marginal product of labour.
• B)downward and decreases the marginal product of labour.
• C)upward and decreases the marginal product of labour.
• D)upward and increases the marginal product of capital.
• E)downward and increases the marginal product of labour.

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Definitions:

Cognition

The cognitive activity of gaining understanding and knowledge by means of thinking, experiencing, and sensory perception.

Mental Activities

Processes related to the mind, such as thinking, reasoning, imagining, and remembering.

Remembering

The cognitive process of retrieving past experiences or information.

Prototype

An original model or initial version of something from which other forms are copied or developed.