Figure 72 Alt Text for Figure 7

question 226

Multiple Choice

Figure 7.2 Alt text for Figure 7.2: In figure 7.2, a graph comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.2: The x-axis is labelled, capital per hour worked.The y-axis is labelled, real GDP per hour worked, Y/L.A concave curve originates from 0 at the vertex and passes through 2 points ($35,000, 1,850) and (40,000, $2000) , toward the end of the x-axis.These 2 points are connected to their respective coordinates on the x-axis and y-axis with dotted lines.
-Refer to Figure 7.2.Assuming no technological change, if Canada increases capital per hour worked by $40,000 every year between 2015 and 2020, we would expect to see

• A)real GDP per hour worked will increase by the same increment each year between 2015 and 2020.
• B)real GDP per hour worked will be lower in 2020 than it was in 2015.
• C)the per-worker production function will get flatter over time.
• D)the per-worker production function will shift up every year there is increase in capital per hour worked.
• E)the per worker production function will become steeper every year.

---

Definitions:

Minimum Number

The least or smallest count or quantity achievable or required under specific conditions.

Planetary Gearsets

A gear system consisting of one or more outer gears revolving around a central (sun) gear, commonly used in automatic transmissions.

Allison TC10

The Allison TC10 is a model of fully automatic transmission designed for heavy-duty trucks, combining the efficiency of manual transmissions with the convenience of automatic shifting.

ECAT

A system or tool used for electronic cataloging, often in the context of parts and components for machinery or vehicles, facilitating easy identification and selection.