An Increase in Total Factor Productivity Involves

question 42

Multiple Choice

An increase in total factor productivity involves

• A) a more educated workforce.
• B) a reduced real wage.
• C) a better technology for converting factor inputs into aggregate output.
• D) an increase in the capital stock.
• E) more government spending.

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Definitions:

Supervised

Being under the oversight or direction of someone more experienced or in a position of authority.

Hierarchical

Organized in a system of levels with higher ranks or classes having authority over lower ones.

Organic Structures

Flexible and adaptive organizational forms that emphasize decentralized decision-making and a high degree of informal communication.

Mechanistic

A highly structured and formal organizational design that emphasizes hierarchy, fixed duties, and centralized decision-making.