Other Things Remaining Equal, Total Factor Productivity Will Fall If

question 8

Multiple Choice

Other things remaining equal, total factor productivity will fall if _____.

• A)labor input grows more slowly than total output
• B)capital input grows faster than total output
• C)the economy's output divided by total inputs increases
• D)the ratio of total output to the stock of labor and capital changes by zero percent
• E)the ratio of total output to the stock of labor and capital increases

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Definitions:

Marginal Costs

The cost incurred by producing one additional unit of a product.

Industry Output

The total product or service produced by companies within a specific sector or industry.

Noncooperative Behavior

Actions in a competitive environment where entities act independently without collaboration, potentially leading to less optimal outcomes.

Marginal Costs

The increase in aggregate expenses due to the production of an additional unit of a good or service.