An Increase in Total Factor Productivity Shifts the Production Function

question 54

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward, but does not change its slope.
• B) upward, and also changes its slope.
• C) downward, but does not change its slope.
• D) downward, and also changes its slope.
• E) upward, but reduces the marginal product of labour.

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Definitions:

Ambrosia

In classical mythology, the food of the gods, or in general usage, something extremely pleasing to taste or smell.

Rocks Oxidize

The chemical process where rocks react with oxygen, leading to changes in their mineral composition and often causing them to weaken or crumble.

Earth's Surface

The outermost layer of the Earth, consisting of the crust and parts of the upper mantle that interact directly with the biosphere and atmosphere.

Minerals

Naturally occurring, inorganic solids with a definite chemical composition and a crystalline structure, forming the building blocks of rocks.