Exhibit 8-1
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the quality of capital used by workers will produce a movement from A to
A)B
B)D
C)E
D)F

Question

Exhibit 8-1 
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the quality of capital used by workers will produce a movement from A to
A)B 
B)D 
C)E 
D)F

Quizplus · Accepted Answer

An improvement in the quality of capital used by workers will shift the per-worker production function upward and to the right, indicating an increase in output per worker. Point B is a higher level of output than Point A, and it is located to the right of Point A on the per-worker production function, so it represents the best choice. Points D, E, F, and G are also to the right of Point A, but they are not as high on the per-worker production function as Point B.

Exhibit 8-1 -In Exhibit 8-1,Tasmania Is Currently Operating at Point a on Point