Scenario 18-8 Suppose the Following Events Occur in the Market for University

question 21

Multiple Choice

Scenario 18-8
Suppose the following events occur in the market for university economics professors.
Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.
Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college, decreasing the output price of university economics professors' services.
-Refer to Scenario 18-8. As a result of these two events, holding all else constant, the equilibrium wages 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 wage.

Understand the ecological roles and adaptations of marine invertebrates, including feeding mechanisms and predator avoidance strategies.

Describe the process and significance of segmentation in annelids and its impact on locomotion.

Recognize the relationship between structure and function in the anatomy of mollusks.

Understand the concept and importance of market definition.

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Definitions:

Active Portfolio Management

The strategy of making buy and sell decisions of investment portfolio holdings, aiming to outperform certain benchmarks.

Modern Portfolio Theory

An investment theory that proposes optimizing the expected return for a given amount of portfolio risk, or alternatively minimizing risk for a given level of expected return, through diversification.

Markowitz

Harry Markowitz, an economist who developed Modern Portfolio Theory, emphasizing the benefits of diversification.

Excess Returns

Excess returns refer to the amount by which an investment outperforms a benchmark or risk-free rate.