Asked by
Phalkon Clement
on Dec 16, 2024Verified
An increase in the quantity of capital per worker would:
A) rotate the per-worker production function outward.
B) rotate the per-worker production function inward.
C) shift the per-worker production function downwards.
D) shift the per-worker production function upwards.
E) result in a rightward movement along the current per-worker production function.
Per-worker Production Function
A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.
Quantity of Capital
The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.
Outward Rotation
An expansion of the production possibilities frontier, indicating an economy's increased capacity to produce goods and services.
- Evaluate the relationship between capital quality, capital quantity, and productivity outcomes.
Verified Answer
RS
Learning Objectives
- Evaluate the relationship between capital quality, capital quantity, and productivity outcomes.