Consider the Market for University Economics Professors

question 133

Multiple Choice

Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics decreases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium wage for university economics professors will

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

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Definitions:

Tax Cuts

Tax cuts refer to reductions in the amount of taxes owed by individuals or corporations, often implemented to stimulate economic growth.

National Income

Net domestic product minus indirect business taxes.

Property Owners

Individuals or entities that hold legal title to land, buildings, or other types of real estate.

Poverty Line

The lowest amount of money required to maintain a satisfactory quality of life in a specific country.