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 wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate.
B) The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate.
C) The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises.
D) The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
A
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Why would lack of cooperation between criminal suspects be desirable for society as a whole?
a. The suspects are able to choose optimal outcomes for themselves by acting in their own self interest. b. The prisoners' dilemma safeguards the criminals' constitutional rights. c. More criminals will be convicted. d. None of the above is correct.
Which of the following is an advantage of starting a new business as a partnership?
A) The owners have limited personal liability. B) Compared to a corporation, a partnership has fewer government rules and regulations to comply with. C) Business profits are not taxed. D) A partnership can easily attain additional funding.