Refer to the Following Figure When Answering the Following Questions

question 78

Multiple Choice

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 an economy improves its legal system, you would see a shift from curve ________ because this is an example of a(n) ________.

• A) increase in TFP
• B) decrease in consumption
• C) increase in the saving rate
• D) rise in the nominal wage
• E) None of these answers is correct.

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Definitions:

Opportunity Costs

The loss of potential gains from other alternatives when one alternative is chosen.

Target Cash Balance

The optimal amount of cash a company sets as a goal to maintain for operational and contingency needs.

Lockboxes

Special post office boxes set up to intercept and speed up accounts receivable payments.

Accounts Receivable

The sum of money that customers owe to a company for products or services that have been provided but not yet compensated for.