Economists would predict that if salaries increased for engineers and decreased for MBAs, fewer people than before would go to graduate school in business and more than before would go in engineering, ceteris paribus
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
According to the Real Business Cycle model real wages should
A) remain constant. B) fall during recessions. C) rise during recessions. D) stay the same during recessions but rise during expansions.
If its value of cross-price elasticity is negative, a good must be a necessity
a. True b. False
When economic profit is zero, producers do not have any incentive to deviate from the current line of production
a. True b. False Indicate whether the statement is true or false
If there are economic profits in a monopolistically competitive industry, they will generally be competed away through the
A) manipulation of the demand curve. B) increasing advertising budgets of existing firms. C) entry of new firms. D) introduction of brand name products by existing firms. E) exit of existing firms.