If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexico's GDP ________ and U.S. GDP ________

Refer to Figure 11-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from

A) A to B. B) B to C. C) D to C. D) B to A.

Joey cuts lawns during the summer. Let q equal the number of acres mowed per day, and let L equal the number of hours worked per day. Joey never works more than eight hours per day, and during that time his short-run production function is q = 0.2 ? L. Which of the following statements is FALSE?

A) Joey's marginal productivity equals his average productivity. B) Joey's marginal productivity diminishes by 0.2 for each additional hour worked. C) Joey's average productivity is constant. D) Joey's marginal productivity is constant.