The per-worker production function has a ________ slope,indicating that increases in capital per hour worked ________ real GDP.
A)negative; increase
B)positive; increase
C)negative; decrease
D)positive; decrease

Question

Quizplus · Accepted Answer

The per-worker production function has a positive slope, indicating that increases in capital per hour worked increase real GDP. This is because capital is a factor of production, which, when combined with labor, can increase output. As capital per hour worked increases, the productivity of each worker increases, leading to an increase in real GDP.

The Per-Worker Production Function Has a ________ Slope,indicating That Increases