Assume That Labor Is Measured Along the Horizontal Axis and Capital

question 39

Multiple Choice

Assume that labor is measured along the horizontal axis and capital is measured along the vertical axis.If the decreases as we move inward toward the origin along the ray (slope of the isoquant becomes flatter) ,we are observing

• A) neutral technological progress.
• B) labor-saving technological progress.
• C) capital-saving technological progress.
• D) both labor-saving and capital-saving technological progress.