Exhibit 8.1

-Refer to Exhibit 8.1. The movement from point A to point B in the figure 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

Exhibit 8.1
 
-Refer to Exhibit 8.1. The movement from point A to point B in the figure 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

An increase in the capital stock relative to the workforce will shift the production function to the right, resulting in a movement from point A to point B.

Exhibit 8.1 -Refer to Exhibit 8.1. the Movement from Point a to from Point