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 there is a forest fire that shuts down the electric grid, 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 TFP
C) $d \rightarrow c$; increase in taxes
D) $c \rightarrow d$; rise in consumption
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 there is a forest fire that shuts down the electric grid, 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 TFP 
C) $d \rightarrow c$; increase in taxes 
D) $c \rightarrow d$; rise in consumption 
E) None of these answers are correct.

Quizplus · Accepted Answer

A decrease in TFP would shift the production possibilities curve inward, from curve a to curve b.

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)