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In the Diagram in Question #7 Above, a Movement from Point

Question 12

Multiple Choice

In the diagram in Question #7 above, a movement from point S to point T will lead to __________ in the capital/labor ratio used in the production of good A and __________ In the capital/labor ratio used in the production of good B.


A) an increase; will lead to a decrease
B) an increase; also will lead to an increase
C) a decrease; also will lead to a decrease
D) a decrease; will lead to an increase

Correct Answer:

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