Suppose a huge scientific breakthrough doubles the output that an additional houra huge scientific breakthrough doubles the output that an additional hourof U.S. labor can produceof U.S. labor can produce. As a​ result, there is​ ______ in the U.S. production function. A.an upward shiftan upward shift B.no shiftno shift C.a downward shifta downward shiftThere is​ ______ in the U.S. demand for labor and​ ______ in the U.S. supply of labor.  A.a decreasea decrease​; a decreasea decrease B.an increasean increase​; a decreasea decrease C.no changeno change​; an increasean increase D.an increasean increase​; no changeno change

Question
Suppose
a huge scientific breakthrough doubles the output that an additional houra huge scientific breakthrough doubles the output that an additional hour
of U.S. labor can produceof U.S. labor can produce.

As a result, there is ______ in the U.S. production function.

A.
an upward shiftan upward shift

B.
no shiftno shift

C.
a downward shifta downward shift
There is ______ in the U.S. demand for labor and ______ in the U.S. supply of labor.

A.
a decreasea decrease;
a decreasea decrease

B.
an increasean increase;
a decreasea decrease

C.
no changeno change;
an increasean increase

D.
an increasean increase;
no changeno change

Step 1

Production function:

Production function depicts the relationship between the total output produced and the given inputs like capital, labor and other factors which are involved in the production process.

Step 2

Option A, upward shift.

There is an upward shift in the U.S. production function because as the production increased labor hour also increase.

Option C, No Change and increase.

There is “no change “in the U.S. demand for labor and “increas...

Want to see the full answer?

See Solution

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in