In Response to an Increase in Total Factor Productivity

question 11

Multiple Choice

In response to an increase in total factor productivity

• A) both the substitution effect and the income effect suggest that hours worked should increase.
• B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease.
• C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase.
• D) both the substitution effect and the income effect suggest that hours worked should decrease.
• E) the net effect is a reduction in the welfare of the representative consumer.

Understand the principles and challenges of transparency and accountability in government, including the Freedom of Information Act and the Government in the Sunshine Act.

Recognize the role and protection of whistleblowers in promoting government accountability.

Understand the concept and implications of privatization within government services.

Identify the importance and functioning of merit-based employment systems in preventing patronage and ensuring efficient governance.

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Definitions:

Highly Centralised

Pertaining to a system or organization where decision-making is kept at a single central point, often leading to a concentration of power.

Hub Person

An individual who acts as a central point of information and communication within a network.

Diffuse Status Characteristics

Information about a person’s abilities that are only obliquely relevant to the group’s task, and derive mainly from large-scale category memberships outside the group.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.