Questions
ECON_002_001_25F Problem Set 2
Single choice
Which of the following changes would shift the entire production function upward?
Options
A.An increase in labor alone
B.An increase in capital alone
C.A technological improvement
D.A rise in wages
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Verified Answer
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Step-by-Step Analysis
Consider what each change does to the production function itself, not just to output given inputs.
Option 1: An increase in labor alone. In a standard production-function framework with technology held constant, more labor moves you up along the same productio......Login to view full explanationLog in for full answers
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