An Increase in the Quantity of Capital Per Worker Would

question 115

Multiple Choice

An increase in the quantity of capital per worker would

• A)rotate the per-worker production function outward
• B)rotate the per-worker production function inward
• C)shift the per-worker production function downwards
• D)shift the per-worker production function upwards
• E)result in movement along the current per-worker production function

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive in the market.

Producer Surplus

The gap between the price producers are ready to take for a good or service and the price they actually get.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale at that price.

Demand Curve

Represents the relationship between the quantity of a good that consumers are willing and able to purchase and the price of that good.