-The Figure Above Shows the U

question 274

Multiple Choice

-The figure above shows the U.S.production function.How would an increase in income taxes be shown in the figure?

• A)a movement from point C to point B
• B)a movement from point A to point B
• C)an upward shift or rotation of the production function
• D)a downward shift or rotation of the production function
• E)None of the above because the effects of an increase in taxes cannot be shown in the figure.

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