The productivity curve shifts upward when

Question

Quizplus · Accepted Answer

Technology advances can lead to more efficient and effective methods of production, resulting in an upward shift of the productivity curve. Physical capital and human capital can contribute to productivity as well, but their increases do not necessarily guarantee an upward shift in the productivity curve. Changes in the number of hours of labor can affect the level of productivity, but they do not directly shift the curve upward.

The Productivity Curve Shifts Upward When