An improvement in the quality of capital would:
A)rotate the per-worker production function upward.
B)make the per-worker production function flatter.
C)shift the per-worker production function downward.
D)rotate the per-worker production function downward.
E)have no effect on the per-worker production function.

Question

Quizplus · Accepted Answer

Improving the quality of capital would mean that each unit of capital becomes more productive, therefore increasing the productivity of each worker. This would result in a rotation upward of the per-worker production function, indicating that each worker can produce more with the same amount of capital.

An Improvement in the Quality of Capital Would