The figure above shows the U.S. production function.
-How would an increase in capital be shown in the figure?
A) a movement from point C to point B
B) an upward shift or rotation of the production function
C) a downward shift or rotation of the production function
D) a movement from point A to point B
E) None of the above because the effects of an increase in capital cannot be shown in the figure.
Correct Answer:
Verified
Q24: The production function displays
A)normal returns.
B)average returns.
C)diminishing returns.
D)increasing
Q25: The quantity of labor demanded definitely increases
Q26: A country reports that its actual real
Q27: When all other influences on firms' hiring
Q28: At full employment, actual-------------equals-------------
A)nominal GDP; potential GDP
B)potential
Q30: Job rationing occurs when the real wage
Q31: Which of the following ideas reflect the
Q32: As additional units of labor hours are
Q33: Suppose Germany's economy is experiencing full employment.
Q34: If New Zealand is operating at potential
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