The positive slope of the per-worker production function illustrates the relationship between per-worker output and ________.
A)diminishing marginal returns
B)the capital-labor ratio
C)the rate of inflation
D)the rate of unemployment

Question

Quizplus · Accepted Answer

The per-worker production function relates the level of output to the amount of capital per worker. The positive slope represents the fact that an increase in the capital-labor ratio results in an increase in per-worker output. Therefore, choice (B) is the correct answer. Choices (A), (C), and (D) are incorrect because they are not related to the concept of the per-worker production function.

The Positive Slope of the Per-Worker Production Function Illustrates the Relationship