Exhibit 8-1
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the "rules of the game" will produce 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.An improvement in the "rules of the game" will produce a movement from A to
A)B 
B)D 
C)E 
D)F

Quizplus · Accepted Answer

An improvement in the "rules of the game" refers to an increase in productivity or better technology. This will shift the per-worker production function upwards and to the right, resulting in a movement from point A to point B. Points D, E, F, and G are not relevant to this scenario as they are either beyond the production possibility frontier or require an increase in the number of workers.

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