Suppose That Technological Progress Increases the Productivity of Teachers

question 514

Multiple Choice

Suppose that technological progress increases the productivity of teachers. Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

• A)rise, and the equilibrium quantity of teachers employed will fall.
• B)rise, and the equilibrium quantity of teachers employed will rise.
• C)fall, and the equilibrium quantity of teachers employed will fall.
• D)fall, and the equilibrium quantity of teachers employed will rise.

---

Definitions:

Periodic Inventory Method

An accounting approach that updates inventory and cost of goods sold at the end of an accounting period based on a physical count.

Merchandise

Goods or products that are bought and sold by businesses in the market.

Purchase Order

A document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.