Which Statement Concerning Possible Changes in Productivity Is TRUE

question 4

Multiple Choice

Which statement concerning possible changes in productivity is TRUE?

• A) Improving technology generally decreases worker productivity.
• B) As MPP_L rises, the demand for the marginal worker rises because the firm is willing to pay higher wages.
• C) As MPP_L rises, the demand for the marginal worker rises because the firm is not willing to pay higher wages.
• D) Worker productivity is generally lower in capital industries than in other industries.

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Definitions:

Debt Extinguishment

The process of discharging or settling a debt, either through repayment or through a financial restructuring agreement.

Bond Premium

The amount by which the market price of a bond exceeds its par value, typically arising when the bond's interest rate is higher than the market rate.

Forward Contract

A customized financial agreement to buy or sell an asset at a specified future date at a price agreed upon today.

Future Date

A specified day in the future, often used in the context of agreements or financial transactions that will occur at a later time.