Refer to the Graph

question 148

Multiple Choice

Refer to the graph. Growth of production capacity is shown by the

• A) shift from AB to CD.
• B) shift from CD to AB.
• C) movement away from point A and toward point B.
• D) movement away from point B and toward point A.

---

Definitions:

Injection

In economics, a method of adding funds or capital to an economy by government spending or exports; in medicine, it's the act of administering a liquid substance directly into the body through a needle and syringe.

Circular Flow

an economic model that depicts how money moves through the economy, from households to businesses and back, via the markets for goods and services and for factors of production.

Value Added

The enhancement a company gives its product or service before offering the product to customers, essentially the difference between the cost of inputs and the value or price of outputs.

Raw Materials

The basic materials from which products are made, typically extracted natural resources or agricultural products.