(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
In this question you are going to analyze the effects of increasing human capital.
(Description)
Assume that an increase in human capital doubles the output per worker when physical capital per worker equals 10000 dollars. Using the graph below identify the point on the either Productivity 1 or Productivity 2 for Albernia. On the Figure there are two productivity curves labeled "Productivity 1" and "Productivity 2". Horizontal axis corresponds to the physical capital per worker (in dollars). Vertical axis corresponds to real GDP per worker (in dollars). These are monotonically increasing curves with decreasing steepness of the gradient. "Productivity 1" curve passes through origin and points A with coordinates (10000,20000) and B with coordinates (30000,40000). "Productivity 2" curve is above "Productivity 1" curve and passes through origin and point C with coordinates (10000,40000).
(Speaker)
If an increase in human capital doubles output per worker, the production function will rotate up and for every level of capital real GDP per worker will double. In the graph we can see that Albernia will now produce 40000 dollars per worker once human capital increases.
(Description)
On the Figure there are two productivity curves labeled "Productivity 1" and "Productivity 2". These are monotonically increasing curves with decreasing steepness of the gradient. "Productivity 1" curve passes through origin and points A with coordinates (10000,20000) and B with coordinates (30000,40000). "Productivity 2" curve is above "Productivity 1" curve and passes through origin and point C with coordinates (10000,40000). Lower "Productivity 1" curve and point C are highlighted.