An Increase in Labor Productivity ________ and ________ the Demand

question 186

Multiple Choice

An increase in labor productivity ________ and ________ the demand for labor.

• A) leads to a movement upward along the production function; does not change
• B) leads to a movement upward along the production function; decreases
• C) shifts the production function upward; does not change
• D) shifts the production function downward; increases
• E) shifts the production function upward; increases

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Definitions:

Minimum Required Rate of Return

The lowest rate of return that a potential investment must offer to be considered acceptable, taking into account the investor's cost of capital and risk appetite.

Annual Turnover

The total sales or revenue a company generates in one year.

ROI Analysis

A financial metric used to evaluate the efficiency of an investment or compare the efficiency of several different investments, calculated by dividing the net profit from the investment by the initial cost of the investment.

Net Operating Income

The income generated from normal business operations, calculated as revenues minus operating expenses and excluding income from investments and taxes.