An Increase in the Level of Total Factor Productivity Will

question 76

Multiple Choice

An increase in the level of total factor productivity will lead to

• A) an increase in the capital-labour ratio and an increase in real GDP per worker.
• B) an increase in investment and a decrease in depreciation.
• C) an upward shift of the break-even investment line and an increase in the capital-labour ratio.
• D) a higher rate of dilution and lower break-even investment.

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Definitions:

Sir Humphrey Gilbert

An English navigator and explorer in the 16th century, recognized for his efforts in attempting to establish the first English colony in North America.

Sir Walter Raleigh

An English adventurer, writer, and courtier of Queen Elizabeth I, known for popularizing tobacco in England and for his attempts to establish colonies in the Americas.

Virginia Company

A joint-stock enterprise that King James I chartered in 1606. The company was to spread Christianity in the New World as well as find ways to make a profit in it.

Functioning Society

A social group or system working effectively together with established structures and institutions that maintain its stability and development.