Exhibit 8.2

-Refer to Exhibit 8.2 which shows three different per-worker production functions: PF₁, PF₂, and PF₃. If PF₁ is the initial per-worker production function, which of the following reflects the impact of an increase in the level of technology?
A) a movement from point D to point C
B) an upward shift from PF₁ to PF₂
C) a downward shift from PF₁ to PF₃
D) a movement from point C to point D
E) a movement from point D to point F

Question

Exhibit 8.2
 
-Refer to Exhibit 8.2 which shows three different per-worker production functions: PF₁, PF₂, and PF₃. If PF₁ is the initial per-worker production function, which of the following reflects the impact of an increase in the level of technology?
A) a movement from point D to point C 
B) an upward shift from PF₁ to PF₂ 
C) a downward shift from PF₁ to PF₃ 
D) a movement from point C to point D 
E) a movement from point D to point F

Quizplus · Accepted Answer

An increase in the level of technology would result in an upward shift in the per-worker production function. From Exhibit 8.2, we can see that option B shows an upward shift from PF₁ to PF₂, which would reflect the impact of an increase in technology. Therefore, the correct answer is B.

Exhibit 8.2 -Refer to Exhibit 8.2 Which Shows Three Different Per-Worker Production