Question

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, a rise in labor ________________________, and a rise in the technology coefficient __________________.
a. shifts the production function upward; also shifts the production function upward
b. moves us up along a given production function; shifts the production function upward
c. shifts the production function downward; shifts the production function upward
d. shifts the production function upward; moves us up along a given production function

Answer 1

Answer:

b. moves us up along a given production function; shifts the production function upward

Explanation:

Labor productivity is responsible for measuring the output of a country's economy each hour. In other words, it charts how much production of GPD is performed per 1 hour of labor. An increase or growth in labor productivity can change depending on 3 main factors: the amount of capital saved and invested, the implementation of new technology, and the levels of human capital.

New technologies consist of new methodologies in a combination of inputs that result in more output, such as turning manual processes into automatic ones. This will increase the production function.