Consider the Production Function Shown in the Figure Below

question 47

Multiple Choice

Consider the production function shown in the figure below. An increase in capital will result in

• A) a downward shift in the production function.
• B) the slope of the production function becoming flatter.
• C) a leftward movement along the production function.
• D) a rightward movement along the production function.
• E) an upward shift in the production function.

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Definitions:

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.

Farm Income

The earnings from agricultural operations, including the sale of crops, livestock, and other farm-related sources.