Scenario 18-7 Suppose the Following Events Occur in the Market for University

question 157

Multiple Choice

Scenario 18-7
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: An increasing number of students in U.S. primary and secondary schools increases the number of students entering college, increasing the output price of university economics professors' services.
-Refer to Scenario 18-7. 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:

Recency Effect

The tendency to remember the most recently presented information best.

Grocery Items

Products and goods available for purchase in supermarkets and grocery stores, typically including food, beverages, and household necessities.

Encoding Specificity Principle

A principle in psychology which posits that memory is most effectively retrieved when the information available at the time of recall is similar to the information available at the time the memory was encoded.

Procedural Memory

relates to the type of long-term memory responsible for knowing how to perform different actions and skills, essentially memory of the process of doing things.