If the Productivity of Farmers Has Risen Substantially Over Time

question 110

Multiple Choice

If the productivity of farmers has risen substantially over time because of technological progress, and workers can move freely between being farmers and barbers, the neoclassical theory of distribution predicts that the real wage(s) of:

• A) both barbers and farmers should have remained constant over time.
• B) both barbers and farmers should have risen over time.
• C) farmers should have risen while the real wage of barbers should have remained constant.
• D) barbers should have risen while the real wage of farmers should have remained constant.

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Definitions:

Refined Version

A version that has been improved or made clearer for better understanding or effectiveness.

Hedonistic Calculus

A method proposed by utilitarian philosophers for calculating the moral rightness of an action based on the net pain or pleasure it produces.

Elements

Fundamental components or essential parts that make up a larger system or concept.

Ethical Action

Behavior or conduct that is right, good, and beneficial to both the individual and society, based on ethical principles.