Suppose That Technological Progress Increases the Productivity of Teachers

question 72

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?

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

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Current Ratio

An indicator of financial health showing whether a business can cover its short-term debts with assets that can be quickly converted into cash.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.