What would an improvement in the quality of capital do to the per-worker production function?
A) It would rotate the per-worker production function upward.
B) It would make the per-worker production function flatter.
C) It would shift the per-worker production function downward.
D) It would rotate the per-worker production function downward.

Question

What would an improvement in the quality of capital do to the per-worker production function?  
A) It would rotate the per-worker production function upward. 
B) It would make the per-worker production function flatter. 
C) It would shift the per-worker production function downward. 
D) It would rotate the per-worker production function downward.

Quizplus · Accepted Answer

An improvement in the quality of capital would increase the amount of output produced by each unit of capital. This increase in productivity would result in a higher level of output for any given level of labor input. Thus, the per-worker production function would rotate upward, indicating that each worker is now capable of producing more output than before.

What Would an Improvement in the Quality of Capital Do