In a Production Function That Is Graphed with Output on the Y-

question 13

Multiple Choice

In a production function that is graphed with output on the y- axis and labor on the x- axis, an increase in the capital stock is illustrated as:

• A) an upward shift in the production function.
• B) a downward movement along the production function.
• C) an upward movement along the production function.
• D) a downward shift in the production function.

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Importer or Exporter

An entity that buys goods and services from a foreign country (importer) or sells them to a foreign country (exporter).

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, underpinning the basis for trade.

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The cost of products or services in a country, affected by domestic demand and supply factors.