Consider the Market for University Economics Professors

question 238

Multiple Choice

Consider the market for university economics professors.Because of the dot.com bust of 2000 and the recession in the U.S.economy,the opportunity cost of going to graduate school to get a Ph.D.in economics decreased for many individuals.It generally takes about five years to get a Ph.D.in economics.Thus,holding all else constant,what likely will happen to the equilibrium wage for university economics professors in and around 2006?

• A)The equilibrium wage will increase.
• B)The equilibrium wage will decrease.
• C)The equilibrium wage will not change.
• D)It is not possible to determine what will happen to the equilibrium wage.

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Definitions:

Partnership Business

A lawful business structure operated by two or more people, where both management responsibilities and profits are shared.

Express Authority

Power clearly stated or written, given by one party to another.

Agreement Of Partners

A legal document outlining the terms and conditions under which partners agree to operate a partnership.

Actual Authority

The express or implied power given to an agent by the principal, allowing the agent to act on behalf of the principal.