The movement from point A to point B in the figure below illustrates the effect of:

A)an increase in the capital stock relative to the workforce.
B)an increase in the labor productivity growth rate.
C)an increase in labor productivity because of higher quality capital.
D)a decrease in labor productivity.
E)a decrease in the capital stock.

Question

The movement from point A to point B in the figure below illustrates the effect of:

A)an increase in the capital stock relative to the workforce. 
B)an increase in the labor productivity growth rate. 
C)an increase in labor productivity because of higher quality capital. 
D)a decrease in labor productivity. 
E)a decrease in the capital stock.

Quizplus · Accepted Answer

The Answer of The movement from point A to point B in the figure below illustrates the effect of:

A)an increase in the capital stock relative to the workforce. 
B)an increase in the labor productivity growth rate. 
C)an increase in labor productivity because of higher quality capital. 
D)a decrease in labor productivity. 
E)a decrease in the capital stock.

The Movement from Point a to Point B in the Figure