Suppose the Following Two Events Occur in the Market for Elementary

question 244

Multiple Choice

Suppose the following two events occur in the market for elementary school teachers:
a. Overcrowded schools and education budget cuts have discouraged young college students from pursuing careers in teaching.
b. With an increasing birth rate, the number of children entering the elementary school system is expected to increase significantly over the next ten years.
What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events?

• A) The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
• B) The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate.
• C) The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate.
• D) The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Sample Size

The number of observations or data points collected in a sample from a larger population.

Normal Distribution

A symmetric, bell-shaped distribution characterized by its mean and standard deviation, where most observations cluster around the mean.

Sample Means

The arithmetic average of a set of values or observations, calculated as the total sum divided by the number of observations in the sample.