Figure 11-6 -Refer to Figure 11-6.The Movement from Isoquant T to Isoquant

question 136

Multiple Choice

Figure 11-6
-Refer to Figure 11-6.The movement from isoquant T to isoquant U depicts

• A) a change in preferences with regards to input usage.
• B) an increase in the cost of production.
• C) an increase in output.
• D) an increase in labor usage holding capital and output constant.

---

Definitions:

Scarcity

A basic economic challenge where human desires appear endless but the resources available are finite.

Positive Statements

Assertions about the world that are factual and can be tested for accuracy.

Normative Statements

Assertions about how the world ought to be, reflecting opinions and subjective values rather than empirical facts.

Normative Statement

An assertion that expresses a value judgment or opinion, discussing what ought to be rather than what is.