Given a production function with capital on the horizontal axis and real GDP on the vertical axis,

classify each of the following as a movement $($up or down$)$ or a shift $($inwards or outwards$)$ of the

production function.

A local company invests $$125$ million in a new

manufacturing plant.

Illegal drug traffickers start to bribe judges

and corrupt the justice system.

A new highway linking two major towns is

constructed.

$[$ Choose $]$

production function shifts inwards

production function not affected

movement down the production function

production function shifts outwards

A new fertilizer formula improves crop yields.