-The Figure Above Shows the U

question 59

Multiple Choice

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

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

---

Definitions:

Protectionist Policies

Economic policies designed to restrict international trade to protect domestic industries from foreign competition.

Domestic Surplus

The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.

Tariffs

Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.

Textiles

Materials made from fibers, filaments, threads, or yarns, suitable for use in the production of fabrics and other goods.