Figure 7.3 Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.
-Refer to Figure 7.3.Technological change is shown in the figure above by the movement from
A)B to C.
B)B to D.
C)B to E.
D)B to A.
E)D to C.

Question

Figure 7.3  Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.
-Refer to Figure 7.3.Technological change is shown in the figure above by the movement from
A)B to C. 
B)B to D. 
C)B to E. 
D)B to A. 
E)D to C.

Quizplus · Accepted Answer

Technological change typically results in an increase in productivity, allowing more output to be produced from the same amount of inputs. This is represented by a shift from point B to E, where the economy can produce more of both goods without increasing the input, indicating an improvement in technology.

Figure 73 Alt Text for Figure 7