The movement from point A to point B in the figure below illustrates the effect of:

A) an increase in the capital stock relative to the workforce.
B) an increase in the labor productivity growth rate.
C) an increase in labor productivity because of higher quality capital.
D) a decrease in labor productivity.
E) a decrease in the capital stock.

Question

The movement from point A to point B in the figure below illustrates the effect of:

A) an increase in the capital stock relative to the workforce. 
B) an increase in the labor productivity growth rate. 
C) an increase in labor productivity because of higher quality capital. 
D) a decrease in labor productivity. 
E) a decrease in the capital stock.

Quizplus · Accepted Answer

The Answer of The movement from point A to point B in the figure below illustrates the effect of:

A) an increase in the capital stock relative to the workforce. 
B) an increase in the labor productivity growth rate. 
C) an increase in labor productivity because of higher quality capital. 
D) a decrease in labor productivity. 
E) a decrease in the capital stock.

The Movement from Point a to Point B in the Figure