Exhibit: Output, Consumption, and Investment In this graph, when the capital-labor ratio is OA, AB represents:
A) investment per worker, and AC represents consumption per worker.
B) consumption per worker, and AC represents investment per worker.
C) investment per worker, and BC represents consumption per worker.
D) consumption per worker, and BC represents investment per worker.

Question

Exhibit: Output, Consumption, and Investment  In this graph, when the capital-labor ratio is OA, AB represents:
A) investment per worker, and AC represents consumption per worker. 
B) consumption per worker, and AC represents investment per worker. 
C) investment per worker, and BC represents consumption per worker. 
D) consumption per worker, and BC represents investment per worker.

Quizplus · Accepted Answer

According to the graph, at the capital-labor ratio of OA, AB represents the investment per worker, and BC represents the consumption per worker. Therefore, option C is correct.

Exhibit: Output, Consumption, and Investment in This Graph, When