Use the Following Graph to Answer the Following Questions

question 163

Multiple Choice

Use the following graph to answer the following questions.

-Consider a country that improves its educational system such that a greater percentage of workers become college educated.It is reasonable to expect

• A) the production function will shift upward.
• B) the production function will shift downward.
• C) there will be an upward movement along the production function.
• D) there will be a downward movement along the production function.
• E) there will be no effect on the production function.

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Definitions:

Curve

A graphical representation of the relationship between two or more variables in a coordinate system, often used in economics to illustrate supply and demand.

Shutdown Point

The level of operation at which a company does not benefit from continuing operations and may decide to temporary halt production—it's where marginal cost equals average variable cost.

Lowest Price

The minimum amount at which a product or service is sold, often determined by costs, competition, and market demand.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.