Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases 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.
b
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Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $98 per day? Why or why not?
According to behavioral economics, participants in a half-marathon are likely to have trained
a. more than they planned and run faster than they anticipated. b. more than they planned but run slower than they anticipated. c. less than they planned and run slower than they anticipated. d. less than they planned but run faster than they anticipated.
A positive income elasticity of demand coefficient indicates that:
A. two products are complementary goods. B. two products are substitute goods. C. a product is a normal good. D. a product is an inferior good.
Estimates of the value of a college education to the student are that there is
A. a $30,000 per year benefit. B. a $330,000 net present value loss. C. an external benefit. D. a $330,000 net present value benefit.