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

question 142

Multiple Choice

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

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

---

Definitions:

360-Day Year

An accounting convention that simplifies interest calculation by assuming all months have 30 days, resulting in a 360-day year.

Interest Charged

The cost incurred for borrowing money or the amount earned on deposited funds, usually expressed as a percentage of the principal.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Contingent Liabilities

Liabilities that may arise from past transactions if certain events occur in the future.