The Effect of an Increase in Labour Productivity,assuming No Change

question 122

Multiple Choice

The effect of an increase in labour productivity,assuming no change in the supply of labour,is i.an increase in the real wage.
Ii) an increase in potential GDP.
Iii) a decrease in the demand for labour.

• A)i only
• B)i and ii
• C)i and iii
• D)ii and iii
• E)i,ii and iii

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Definitions:

Mutual Exchanges

A process where parties agree to transfer goods, services, or other items of value with each other.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services, often aimed at curbing inflation or protecting consumers.

Market Efficiency

A condition in which market prices fully reflect all available information, allowing for optimal allocation of resources without waste.