Asked by Noelle Leipold on May 08, 2024

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An improvement in the quality of capital would:

A) rotate the per-worker production function upward.
B) make the per-worker production function flatter.
C) shift the per-worker production function downward.
D) rotate the per-worker production function downward.
E) have no effect on the per-worker production function.

Capital Quality

The effectiveness or productivity of capital goods, which can be improved through technological advancements or better skills training.

Per-worker Production Function

A mathematical representation of the output produced by the average worker, evaluating the relationship between labor input and production.

Production Function

A mathematical equation that describes the relationship between inputs used in production and the output generated from those inputs.

  • Understand the concept and implications of the per-worker production function.
  • Analyze the effects of capital quality and quantity on productivity.
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MR
Michele RamiirrezMay 12, 2024
Final Answer :
A
Explanation :
Improving the quality of capital would mean that each unit of capital becomes more productive, therefore increasing the productivity of each worker. This would result in a rotation upward of the per-worker production function, indicating that each worker can produce more with the same amount of capital.