If, after an outflow of workers in a country, it now takes more capital per hour worked to get the same amount of GDP per hour worked, this indicates ________ the per-worker production function in that country.
A)a movement up
B)a movement down
C)an upward shift of
D)a downward shift of
E)a pivot to the left

Question

Quizplus · Accepted Answer

The outflow of workers means there are fewer workers available, which decreases the labor input in the production function. Therefore, the only way to maintain the same level of output is by increasing the capital per worker. This indicates a downward shift of the per-worker production function.

If, After an Outflow of Workers in a Country, It