Use the Following Graph to Answer the Following Questions

question 113

Multiple Choice

Use the following graph to answer the following questions.

-If net investment is negative but technology has advanced,then

• A) the production function will shift upward and capital is unchanged.
• B) the production function will shift downward and capital is unchanged.
• 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 a downward movement along the production function.

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Definitions:

Acceptance

A term used in contract law, acceptance refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Canceled

The act of formally terminating or voiding an agreement, contract, policy, or event.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that governs the sale of goods between parties in different countries.

Effective

The state at which something is able to accomplish its intended purpose, produce the desired outcome, or is in force.