A Technological Advance That Increases the Productivity of Teachers Can

question 30

Multiple Choice

A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?

• A) Wages will rise, and quantity of labor will fall.
• B) Wages will rise, and quantity of labor will rise.
• C) Wages will fall, and quantity of labor will fall.
• D) Wages will fall, and quantity of labor will rise.

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Definitions:

EMV

Expected Monetary Value, a risk management tool used to calculate the average outcome when the future includes scenarios that may or may not happen.

States of Nature

Hypothetical conditions or scenarios in decision theory and economics, representing all possible situations that could affect the outcome of a decision.

EMV

An acronym for Expected Monetary Value, a calculation used in decision making that quantifies the average outcome of a future event in monetary terms.

Payoff Table

A tool used in decision making that shows the outcome or results of different strategies under various conditions.