Exhibit 8-1
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.A war that destroys half of Tasmania's capital stock without diminishing the workforce will result in a movement from A to
A)B
B)D
C)E
D)F

Question

Exhibit 8-1 
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.A war that destroys half of Tasmania's capital stock without diminishing the workforce will result in a movement from A to
A)B 
B)D 
C)E 
D)F

Quizplus · Accepted Answer

A war that destroys half of the capital stock will reduce the capital available per worker, leading to a movement down along the per-worker production function to a lower level of output per worker, such as point E.

Exhibit 8-1 -In Exhibit 8-1,Tasmania Is Currently Operating at Point a on Point