In High Schools, All Teachers Were Paid the Same Based

question 258

Multiple Choice

In high schools, all teachers were paid the same based on years of service and regardless of specialization.Beginning in the 1970s, a shortage of science and math teachers developed as private industry paid more for math and science skills than schools could offer.At the same time, a decline in the number of school-age children tended to reduce the demand for all other teachers, which led to a surplus.The economist's solution to this problem would be

• A)merit pay to reward the best teachers.
• B)recognition that all teachers do comparable work and should be paid the same.
• C)to raise the wages of all teachers.
• D)to raise the wages of teachers in fields that are in short supply and lower those of others.

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Definitions:

Capital Budget

The process of planning and managing a company's long-term investments in major assets or projects.

Surplus Cash

Excess cash held by a company over and above its operating needs and plans, which can be invested or returned to shareholders.

Free Trade Credit

An arrangement where buyers can purchase goods and pay for them later without interest.

Net Purchases

The total amount of goods bought by a company during a period, minus any returns, allowances, or discounts.