Use the Following Graph to Answer the Following Questions

question 145

Multiple Choice

Use the following graph to answer the following questions.

-If capital is increasing,then

• A) the production function will shift upward.
• B) the production function will shift downward.
• 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 an upward movement along the production function.

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Definitions:

Installment Note

A debt instrument that requires the borrower to make regular payments (installments) of principal and interest over a set period until the total debt is paid.

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.

Interest Expense

The financial charge for an entity using borrowed capital over a time frame.

Notes Payable

Short-term or long-term liabilities representing amounts owed on written promises to pay a specific sum of money at a future date.