Scenario 18-8 Suppose the Following Events Occur in the Market for University

question 509

Multiple Choice

Scenario 18-8
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: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college, decreasing the output price of university economics professors' services.
-Refer to Scenario 18-8. 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)It is not possible to determine what will happen to the equilibrium quantity.

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings across eight stages.

Sense Of Trust

A feeling of confidence in the reliability and integrity of a person or thing, which is fundamental to healthy relationships and personal development.

First Year

The initial period of twelve months or the introductory stage of various endeavors or experiences, often marked by rapid learning and development.

Primary Caregiver

The main person responsible for providing care and meeting the needs of a child or dependent, often a parent or guardian.