Figure 11-2
-Refer to Figure 11-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018,we would expect to see
A)real GDP per hour worked will increase by the same increment each year between 2014 and 2018.
B)real GDP per hour worked will be lower in 2018 than it was in 2014.
C)the per-worker production function will get flatter over time.
D)the per-worker production function will shift up every year there is increase in capital per hour worked.

Question

Figure 11-2 
-Refer to Figure 11-2.Assuming no technological change,if the United States increases capital per hour worked by $40,000 every year between 2014 and 2018,we would expect to see
A)real GDP per hour worked will increase by the same increment each year between 2014 and 2018. 
B)real GDP per hour worked will be lower in 2018 than it was in 2014. 
C)the per-worker production function will get flatter over time. 
D)the per-worker production function will shift up every year there is increase in capital per hour worked.

Quizplus · Accepted Answer

The per-worker production function will get flatter over time due to diminishing returns to capital, meaning that as more capital per hour worked is added, the additional output produced by the last unit of capital decreases.

Figure 11-2 -Refer to Figure 11-2.Assuming No Technological Change,if the United States