Given a production function with capital on the horizontal axis and real GDP on the vertical axis, classify each of the following as a movement (up or down) or a shift (inwards or outwards) of the production function. Group of answer choices Expanding the size of the factories production function shifts outwards Firms invest in training programs to enhance the skills of its employees. production function shifts outwards New government regulation makes it easier to open new businesses and pay business taxes. production function shifts outwards New technology is not compatible with current operations, slowing down worker production.
Added by Trevor V.
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Step 1: Expanding the size of the factories would lead to an increase in capital, resulting in a shift outwards of the production function. Show more…
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QUESTION 4: Use production possibilities curves to illustrate each of the following (putting goods on the vertical axis and services on the horizontal axis): a) A shift in production from services towards goods. b) An increase in the potential output of the economy due to a greater availability of factors of production. c) An increase in productivity in the services sector. d) A decrease in productivity in the goods sector.
Crystal W.
If the per-worker production function shifts down, Group of answer choices it now takes more capital per hour worked to get the same amount of real GDP per hour worked. positive technological change has occurred in the economy. the per-worker production function becomes steeper. an economy can increase its real GDP per hour worked without changing the level of capital per hour worked.
Economic growth can be portrayed as a: A. outward shift of the production possibilities curve. B. inward shift of the production possibilities curve. C. movement from a point on to a point inside a production possibilities curve. D. movement from one point to another point on a production possibilities curve.
Andrew D.
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