Question

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis a. is positive and gets steeper as capital per worker rises. b. is positive and gets flatter as capital per worker rises. c. is negative and gets steeper as capital per worker rises. d. is negative and gets flatter as capital per worker rises.

Answer 1

B.

Step-by-step explanation:

Per worker production function expresses the relationship between the amount of capital per worker (horizontal axis) and the output per worker (vertical axis), other things constant (level of technology and the rules of the game).

Any point in the production function (PF), shows how much output per worker can be produced for a given amount of capital per worker.

When there are k units of capital per worker, average output per worker in the economy is y.

Upward slope of the curve occurs because an increase in capital per workers helps each worker produce more output.