Refer to the following figure when answering
Figure 15.1: The Labor Market
-Consider Figure 15.1, which is a representation of the labor market. If an economy improves its legal system, you would see a shift from curve ________ because this is an example of a(n) ________.
A) $b \rightarrow a$; increase in TFP
B) $a \rightarrow b$; decrease in consumption
C) $d \rightarrow c$; increase in the saving rate
D) $c \rightarrow d$; rise in the nominal wage
E) None of these answers are correct.

Question

Refer to the following figure when answering     
Figure 15.1: The Labor Market 
-Consider Figure 15.1, which is a representation of the labor market. If an economy improves its legal system, you would see a shift from curve ________ because this is an example of a(n) ________.
A) $b \rightarrow a$; increase in TFP 
B) $a \rightarrow b$; decrease in consumption 
C) $d \rightarrow c$; increase in the saving rate 
D) $c \rightarrow d$; rise in the nominal wage 
E) None of these answers are correct.

Quizplus · Accepted Answer

Improving the legal system can enhance Total Factor Productivity (TFP), leading to a shift from curve $b \rightarrow a$ as it reflects an increase in productivity and efficiency in the labor market.

Refer to the Following Figure When Answering b→ab \rightarrow ab→a ; Increase in TFP B)

Refer to the Following Figure When Answering $b \rightarrow a$ ; Increase in TFP
B)