If the per-worker production function shifts up
A)it now takes more capital per hour worked to get the same amount of real GDP per hour worked.
B)an economy can increase its real GDP per hour worked without changing the level of capital per hour worked.
C)the per-worker production function becomes flatter.
D)negative technological change has occurred in the economy.

Question

Quizplus · Accepted Answer

When the per-worker production function shifts up, it means that each worker is now able to produce more output per hour worked. This can be achieved without requiring any additional capital per hour worked. Therefore, option B is the correct answer. Option A is incorrect because there is no indication that the level of capital has changed. Option C is incorrect because a shift in the production function may make it steeper or flatter, depending on the nature of the shift. Option D is incorrect because a shift up in the production function indicates positive technological change, not negative.

If the Per-Worker Production Function Shifts Up