An Increase in Total Factor Productivity Shifts the Production Function

question 26

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward and reduces the marginal product of labour.
• B) upwards and increases the marginal product of labour.
• C) downward and reduces the marginal product of labour.
• D) downward and increases the marginal product of labour.
• E) downward and also reduces its slope.

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Definitions:

Assignable Cause Variation

Variation in a process that can be traced to specific, identifiable sources, often signaling issues that need correction.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner using a continuous flow to create a finished product efficiently.

P Chart

A type of control chart used to monitor the proportion of defectives in a process over time.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product in the most efficient way.