Use the following graph to answer the following questions.

-If more natural resources are discovered,then
A) the production function will shift upward.
B) the production function will shift downward.
C) there will be an upward movement along the production function.
D) there will be a downward movement along the production function.
E) there will be no effect on the production function.

Question

Use the following graph to answer the following questions.
 
-If more natural resources are discovered,then
A) the production function will shift upward. 
B) the production function will shift downward. 
C) there will be an upward movement along the production function. 
D) there will be a downward movement along the production function. 
E) there will be no effect on the production function.

Quizplus · Accepted Answer

If more natural resources are discovered, it will increase the availability of inputs, which will shift the production function upward. This means that with the same amount of labor and capital, the economy can produce more goods and services.

Use the Following Graph to Answer the Following Questions