Figure 11-3
-Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A)an improvement in technology
B)a decrease in capital per hour worked
C)an increase in capital per hour worked
D)a technological regression

Question

Figure 11-3 
-Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A)an improvement in technology 
B)a decrease in capital per hour worked 
C)an increase in capital per hour worked 
D)a technological regression

Quizplus · Accepted Answer

Moving from point A to point B involves an increase in capital per hour worked, which is represented by an outward shift of the production function. This can happen due to factors such as investment in physical capital, improvements in human capital, or technological progress that allows for more efficient use of existing capital. Therefore, option C is the correct choice. Option A is incorrect because an improvement in technology would lead to a shift of the production function itself, but not necessarily a movement from point A to point B. Option B is incorrect because a decrease in capital per hour worked would result in a shift inward of the production function, leading to a point inside the production possibilities frontier. Option D is incorrect because a technological regression would lead to a shift inward of the production function, just like a decrease in capital per hour worked.

Figure 11-3 -Refer to Figure 11-3.Which of the Following Would Cause an Would