Which of the following factors pushes the per-worker production function of an economy downward?
A)A stable political environment
B)A high risk of terror attack
C)An increase in educated workforce in the country
D)An increase in road networks in the country
E)A law encouraging foreign investment

Question

Quizplus · Accepted Answer

A high risk of terror attack can lead to a decrease in capital investment and productivity as resources are redirected towards security measures, resulting in a downward shift in the per-worker production function. The other choices (A, C, D, and E) are unlikely to push the per-worker production function downward as they are either positive factors for economic growth or neutral.

Which of the Following Factors Pushes the Per-Worker Production Function