Extrinsic Productivity Indicates How Much Labour,capital,materials,and Energy It Takes to Produce

question 2

True/False

Extrinsic productivity indicates how much labour,capital,materials,and energy it takes to produce an output.

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Definitions:

Substitution Effects

The change in the consumption pattern of goods due to a change in their relative price, leading consumers to substitute one good for another.

Labor Market

The input/factor market in which households supply work for wages to firms that demand labor.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute cheaper goods for more expensive ones.

Wage Decrease

A reduction in the pay rate of a worker or a group of workers.