Suppose in Philadelphia the Quantity of Economists Demanded Is Less

question 71

Multiple Choice

Suppose in Philadelphia the quantity of economists demanded is less than the quantity supplied by 2,000 economists.As a result,

• A) there is a shortage of economists in Philadelphia.
• B) salaries for economists fall.
• C) there is equilibrium in this market.
• D) the labor supply curve for economists in Philadelphia is vertical.
• E) the labor demand curve for economists in Philadelphia shifts rightward.

---

Definitions:

Risk Premium

The excess return that an investment is expected to yield over a risk-free rate as compensation for its higher risk.

Canadian Common Stocks

Shares representing ownership in Canadian companies, traded on stock exchanges and entitling holders to voting rights and dividends.

Arithmetic Return

The simple average of a series of returns generated over a period of time, providing a basic measure of investment performance.

Investment

The allocation of resources, typically money, with the expectation of generating an income or profit.