Refer to the Following Figure to Answer the Next

question 64

Multiple Choice

Refer to the following figure to answer the next questions.

- Based on the figure, a decrease in ________ could cause the economy to move from point A to point B.

• A) investment
• B) consumer confidence
• C) labor productivity
• D) the price of oil
• E) taxes

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Definitions:

Productive Farmland

Land that is capable of producing a high yield of crops due to its fertility, favorable climate, or efficient management.

Diminishing Returns

The principle that as an increasing amount of one factor of production is employed, holding all other factors constant, the additional output generated will eventually decrease.

Marginal Productivity

Marginal productivity refers to the extra output, income, or benefit derived from using an additional unit of a variable factor of production, holding all other inputs constant.

Factors Of Production

The resources used to produce goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.