Using the Textbook's Production Function,if Two Percent More Labor Working

question 57

Multiple Choice

Using the textbook's production function,if two percent more labor working with two percent more capital produces two percent more real GDP,then "multifactor productivity" has

• A)risen by four percent.
• B)risen by two percent.
• C)remained unchanged.
• D)fallen by one percent.
• E)fallen by two percent.

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Definitions:

Excludable

A characteristic of a good or service that allows owners or producers to prevent its use by people who have not paid for it.

Nonpayers

Individuals who benefit from a good or service without contributing to its cost, often associated with public goods.

Nonrival in Consumption

A characteristic of some goods or services where one person's consumption does not reduce availability for others.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, a key concept used in decision-making and pricing strategies.