Scenario 18-6 Suppose the Following Events Occur in the Market for University

question 180

Multiple Choice

Scenario 18-6
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: An increasing number of students in U.S. primary and secondary schools increases the number of students entering college, increasing the output price of university economics professors' services.
-Refer to Scenario 18-6. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

• A)increase.
• B)decrease.
• C)not change.
• D)not be able to be determined without more information.

---

Definitions:

Banking System

denotes the network of institutions that provide financial services, including deposits, loans, and currency exchanges.

Collection Float

The time difference between when a check is deposited into a bank account and when the funds are made available.

Availability Delay

The lag time between when a deposit is made into an account and when the funds become available for use.

Collection Float

The time difference between when a check is deposited into a bank account and when the amount is credited to the account, affecting the cash flow.