Refer to Figure 6.1 for the following questions.
Figure 6.1

-Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in Figure 6.1 by the movement from:
A)E to B to D.
B)A to B to C.
C)A to E.
D)A to D.

Question

Refer to Figure 6.1 for the following questions.
Figure 6.1
 
-Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in Figure 6.1 by the movement from:
A)E to B to D. 
B)A to B to C. 
C)A to E. 
D)A to D.

Quizplus · Accepted Answer

The correct answer is D) A to D because an increase in capital per hour worked and technological change both contribute to an outward shift in the production possibilities frontier, indicating an increase in the economy's capacity to produce. This is represented by a movement from an initial point (A) to a new, more productive point (D) on the graph.

Refer to Figure 6.1 for the Following Questions