Refer to the following figure when answering the following questions.
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) increase in TFP
B) decrease in TFP
C) increase in taxes
D) rise in consumption
E) None of these answers is correct.

Question

Refer to the following figure when answering the following questions.
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) increase in TFP 
B) decrease in TFP 
C) increase in taxes 
D) rise in consumption 
E) None of these answers is correct.

Quizplus · Accepted Answer

A forest fire that shuts down the electric grid would negatively impact productivity and technology, resulting in a decrease in total factor productivity (TFP) and a shift from curve 11eab38d_06f5_483b_a5fb_0194e55ce9f1_TB6622_00, also known as the production function curve. None of the other choices are relevant to this scenario.

Refer to the Following Figure When Answering the Following Questions