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Question: Economic growth derives from many sources. Some of these cause a parallel shift in a nation's production function, while others change the slope of the production function. Below is a graph of three different production functions: F1, F2, and F3. Assume that a nation begins with production function F1. Production function F2 is a parallel shift upward from F1; in contrast, F3 is an increase in the slope from F1. For each of the following scenarios, determine which of the two new production functions, F2 or F3, best illustrates how the scenario would affect production.
a. Human capital rises through education.
b. Technological advancement occurs.
c. New natural gas reserves are found.
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