Use the Following Graph to Answer the Following Questions

question 117

Multiple Choice

Use the following graph to answer the following questions.

-If net investment is positive,then

• A) the production function will shift upward.
• B) the production function will shift downward.
• C) there is an upward movement along the production function.
• D) there is a downward movement along the production function.
• E) there is an upward shift of the production function and an upward movement along the production function.

---

Definitions:

Capital Goods

Long-term assets such as machinery, buildings, and equipment purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming full and efficient utilization of resources.

Opportunity Cost

The exclusion of favorable outcomes from different choices upon selecting one option.

Increasing Opportunity Cost

A scenario where choosing more of one option increasingly limits the ability to choose other options, demonstrating the trade-offs in resource allocation.