Figure 22-1

-Refer to Figure 22-1.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Question

Figure 22-1
 
-Refer to Figure 22-1.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Quizplus · Accepted Answer

Moving from point A to point B involves an increase in output per hour worked, which can be achieved by an increase in capital per hour worked. Therefore, choice C is the correct answer. Option A is incorrect because an improvement in technology would shift the production function upward, but it would not necessarily lead to a movement from point A to point B. Option B is incorrect because a decrease in capital per hour worked would lead to a movement to the left, from point A to a point like C. Option D is incorrect because a technological regression would shift the production function downward, resulting in a movement from point A to a point like D.

Figure 22-1 -Refer to Figure 22-1.Which of the Following Would Cause an Following