Use the Following to Answer Questions

question 37

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Production Function
-(Exhibit: Aggregate Production Function) Which of the following could cause the production function to shift upward?

• A) an increase in the quantity of labor employed
• B) an increase in the economy's average price level
• C) an increase in the availability of natural resources
• D) an increase in the real wage rate

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Definitions:

Extracting Oil

The process of removing crude oil from the earth through drilling or other methods to use as an energy source or in various industrial applications.

Shale

A fine-grained sedimentary rock that can contain significant amounts of oil and natural gas within its layers.

User Cost

The economic cost of using a good or service, including the opportunity cost of not having the good available for future use.

Extraction Cost

The expenses associated with the removal of resources or raw materials from the earth, such as mining, drilling, or quarrying.