Refer to Figure 6.1 for the Following Questions

question 67

Multiple Choice

Refer to Figure 6.1 for the following questions.
Figure 6.1

-The movement from A to B to C in Figure 6.1 illustrates:

• A)an improvement in technology.
• B)a decline in capital per worker.
• C)diminishing returns to capital.
• D)diminishing returns to labour.

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Definitions:

Gasoline

A volatile fuel used primarily in internal combustion engines.

Revealed Preference

A theory in economics that assumes the preferences of consumers can be revealed by their purchasing habits.

Prices

The amounts of money expected, required, or given in payment for goods or services.

Goods

Physical items that are produced and can be traded or used to satisfy wants and needs.