Figure 11-4
-Refer to Figure 11-4.The movement from A to B to C illustrates
A)an improvement in technology.
B)a decline in capital per worker.
C)diminishing returns to capital.
D)diminishing returns to labor.

Question

Figure 11-4 
-Refer to Figure 11-4.The movement from A to B to C illustrates
A)an improvement in technology. 
B)a decline in capital per worker. 
C)diminishing returns to capital. 
D)diminishing returns to labor.

Quizplus · Accepted Answer

The movement from point A to B in the graph shows an increase in capital per worker, which leads to an increase in output per worker. However, the movement from point B to C shows a smaller increase in output per worker, indicating diminishing returns to capital.

Figure 11-4 -Refer to Figure 11-4.The Movement from a to B to to B