Scenario 19-6​ the After-School Tutoring Industry Is Competitive, and So Is the Is

question 117

Multiple Choice

Scenario 19-6​
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, while unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.
-Refer to Scenario 19-6. Long run competition in the after-school tutoring market is consistent with which of the following statements, assuming consumers do not discriminate between male and female tutors?

• A)Tutoring centers only hiring male tutors have lower cost, leading to an increase in the demand for male tutors.
• B)All firms that hire only male tutors will shut down because they are not able to compete.
• C)All firms that hire only female tutors will shut down because they are not able to compete.
• D)Nothing will change; All firms will continue to operate as they do now.

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Definitions:

Ethel Rosenberg

An American woman who, with her husband Julius Rosenberg, was convicted of espionage for allegedly passing atomic secrets to the Soviet Union during the Cold War.

Truman Doctrine

A United States policy, established in 1947, aimed at containing the spread of communism beginning with aid to Greece and Turkey.

Dean Acheson

Was an American statesman and lawyer, serving as the United States Secretary of State under President Harry S. Truman from 1949 to 1953.

Democratic Institutions

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