If a Neutral Technological Advance Improves the Production Function, the Neoclassical

question 87

Multiple Choice

If a neutral technological advance improves the production function, the neoclassical theory of distribution predicts:

• A) the real wage will rise and the real rental price of capital will fall.
• B) both the real wage and the real rental price of capital will fall.
• C) both the real wage and the real rental price of capital will rise.
• D) the real wage will fall and the real rental price of capital will rise.

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Definitions:

Electron Flow

The movement of electrons through or between molecules, typically in the context of chemical reactions or electrical circuits.

Intermediate Structures

Transient species that form during the steps of a chemical reaction but do not appear in the final reaction products.

Formal Charges

A bookkeeping tool used in chemistry to assign charges to atoms in a molecule, calculated based on the valence electrons an atom is expected to have versus the electrons it actually controls.

Plus Four Estimate

A technique in constructing a confidence interval that adds four to the sample size (two successes and two failures) for estimating proportions with small samples.