During a job search, individuals will sometimes accept the lower of two competin

Question

During a job search, individuals will sometimes accept the lower of two competing salary offers. What would best explain this decision?

The lower salary is still better than the salary earned at the previous job.

The government offers numerous educational subsidies through grants and low-cost equipment to schools. They also provide a lot of incentives to go to school. Because of this, we expect that the equilibrium price of education will ________ and the equilibrium quantity of students will ________.

go up; go up

When people move to an area of the world that was previously unpopulated, we expect more consumers and more producers to spring up in that area. What would we expect to happen to the price and quantity in the markets where this happens?

The equilibrium price will go up and equilibrium quantity will be indeterminate.

Trade-offs occur in all of the following scenarios EXCEPT

Explanation / Answer

1) Individual sometime accepts the lower of two competing salary offer because there are opportunities in future to increase their salary by promotion. The second option is correct.

2) More students want to go to school because of the government grant, giving the incentive to go to school. So the demand for school will be increased. It increases the equilibrium price and quantity of student

The government provides low-cost equipment to schools so the supply of school will be increased. It decreases the price of education and increases the quantity of student.

So in both cases, the quantity of students is increased. But the price of education depends on whether supply increases more or demand increase more. That is the price is indeterminate. The fourth option is correct.

3) More consumer means more demand. So the price and quantity will be increased. More suppliers mean more supply. Si the price will be decreased and the quantity will be increased. In both cases, the quantity is increased. But the price is indeterminate. The first option is correct.

4) Tradeoff means to compromise one opportunity for other which is taken. Shoppers want to buy two shirts totaling of $50. And he has $35 to spend on each. Here no tradeoff as the shoppers buy both shirts with his budget. the second option is correct.

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