Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium wage for university economics professors will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium wage.
a
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In a centrally planned economy, resources are allocated primarily in accordance with directives from government agencies.
Answer the following statement true (T) or false (F)
Which of the following is an amendment to the Clayton Act that strengthened it against price discrimination?
a. The Sherman Antitrust Act. b. The Federal Trade Commission Act. c. The Robinson-Patman Act. d. The Celler-Kefauver Act.
A necessary condition for a money economy to be self-regulating is that
A) wages must be flexible in an upward direction, but not in a downward direction. B) the economy must always be operating on its institutional production possibilities frontier. C) wages must be flexible in a downward direction, but not in an upward direction. D) interest rates must be flexible in the credit market. E) none of the above
The slope of the aggregate demand curve illustrates that real GDP demanded will increase when
A. the price level rises. B. the price level falls. C. real income rises. D. real income falls.