Consider the Following Graph

question 72

Multiple Choice

Consider the following graph.What would cause a downward shift of the production function?

• A) a war that creates a large amount of political instability
• B) a decrease in capital
• C) a decrease in investment
• D) an increase in depreciation
• E) a decrease in real gross domestic product (GD

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues; also known as net earnings or net profit.

Equity

Represents the shareholder's ownership interest in a company, calculated as the difference between total assets and total liabilities.

Debt-Equity Ratio

An evaluation of corporate leverage, calculated by the division of a company's total liabilities by the equity of its shareholders.

Increased

Refers to a situation where there has been a rise in quantity, value, or size of a particular item or variable.