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 quantity of university economics professors will
a. increase.
b. decrease.
c. not change.
d. It is not possible to determine what will happen to the equilibrium quantity.
b
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Based on the above table, the reserve ratio for the banking system is
A) 1 percent. B) 15 percent. C) 20 percent. D) 10 percent.
If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the employment/population ratio is measured as
A) N/Q B) U/Q C) (Q-U)/N D) Q/N
If a tax system is made more progressive, the pre-tax wages of upper-income individuals will tend to rise
a. True b. False
Which of the following is NOT a function of rental prices?
A) to stimulate the construction of new housing B) to ration the existing housing stock C) to provide housing to individuals below market value D) to allocate existing scarce housing among different people