Which of the following would shift the production function upward?

Question

Quizplus · Accepted Answer

An improvement in technology would increase the productivity of all inputs in the production function, resulting in an upward shift of the production function. None of the other options would shift the production function upward. In fact, (A) an increase in the price of oil and (C) a decrease in the supply of labour would cause a leftward shift of the production function, while (D) a decline in the birth rate would reduce the size of the labour force, leading to a lower level of output.

Which of the Following Would Shift the Production Function Upward