Suppose Total Factor Productivity Increases

question 16

Multiple Choice

Suppose total factor productivity increases. Which of the following is incorrect?

• A) Households are better off.
• B) Consumption goes up.
• C) The real wage goes down.
• D) Output goes up.

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Definitions:

Internal Rate

A financial metric, often referring to the internal rate of return (IRR), which is used to evaluate the profitability of potential investments.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.

Outlay

The total amount of money spent on a particular purchase or project.

IRR

Internal Rate of Return; a metric used in financial analysis to estimate the profitability of potential investments.