An Increase in Total Factor Productivity Shifts the Production Function

question 86

Multiple Choice

An increase in total factor productivity shifts the production function

• A) upward and increases the marginal product of labor.
• B) upward and decreases the marginal product of labor.
• C) downward and increases the marginal product of labor.
• D) downward and decreases the marginal product of labor.

---

Definitions:

Authenticity

The quality of being genuine, original, or not a copy, often verified through evidence or certification.

Materially Different Meanings

Terms or phrases that have significantly divergent implications in different contexts or interpretations.

Interpretation

The process of explaining, defining, or clarifying the meaning of words, texts, or actions.

Bilateral Mistake

A misunderstanding where both parties involved in a contract have an incorrect belief about a basic assumption on which the contract is based.