Consider the market for medical doctors. Suppose the opportunity cost of going to medical school decreases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium wage for doctors will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium wage.
b
You might also like to view...
"Medium term notes" have a maturity ranging up to
A) one year. B) two years. C) five years. D) ten years.
A Lorenz curve measures the ________ on the vertical axis
A) cumulative percentage of money income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare
If the marginal utilities of the first 5 candy bars are 15, 14, 10, 7, and 3, respectively, the total utility derived from consuming all 5 candy bars is
a. 5 b. –12 c. 12 d. 35 e. 49
Which of the following conditions distinguishes monopolistic competition from perfect competition?
a. the number of sellers in the market b. the freedom of entry and exit by firms in the market c. the size of firms in the market d. product differentiation