Suppose That Technological Progress Increases the Productivity of Teachers

question 514

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? Equilibrium wages will

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

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Definitions:

Least Squares Line

A straight line that minimizes the sum of the squares of the differences between the observed and predicted values.

Coefficient Of Determination

A statistical measure, often symbolized as R^2, that represents the proportion of the variance in the dependent variable predictable from the independent variable(s).

Correlation Coefficient

A measure that determines the degree to which two variables' movements are associated, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Prediction Interval

An estimate of an interval in which future observations will fall, with a certain degree of confidence, based on a predictive model.