1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vikentia [17]
2 years ago
5

At a university faculty meeting, a proposal was made to increase the housing benefits for new faculty to keep pace with the high

cost of housing. True or False: In the long run, this increase in housing benefits will make faculty positions more attractive than other jobs. (Hint: Consider how the indifference principle applies to this occupation in the long run.) True False
Business
1 answer:
mariarad [96]2 years ago
8 0

FALSE

The indifference principle states that, in the long run, if an asset is mobile, then it will be indifferent about where it is used. That is, the asset will earn the same profit no matter where it goes.

<h3>How does the indifference principle apply to this occupation in the long run?</h3>

When applied to the labor market, the indifference principles imply that wages will adjust to restore equilibrium. In this case, an increase in some non-salary benefits (such as housing benefits or health care benefits) makes the faculty position more attractive relative to other occupations. However, over the long run, as more people seek to become faculty members, the supply of labor in this occupation will increase, driving down wages in the occupation. At the same time, the supply of labor will decrease in other industries, as individuals in those industries (or individuals who would have entered those industries) seek to become faculty members. Thus, wages in other industries rise.

The wages of new faculty members will continue to fall until faculty jobs are just as attractive as any other job. At this point, there is no incentive for individuals to continue to enter the college teaching profession, and the labor supply for faculty positions will stop increasing. Since the supply of labor has stopped increasing, wages stop decreasing. At this new equilibrium, despite the increase in benefits, wages have adjusted downward so that faculty jobs are equally attractive as other jobs.

At the same time, when people in other businesses (or people who would have entered other industries) seek employment as faculty members, the supply of labor in those other industries will decline. As a result, other industries' pay increases.

New faculty members' salaries will keep declining until they are competitive with other occupations. The labor supply for professor posts will eventually run out because there is no longer any incentive for people to pursue careers as college teachers. Because the labor supply is no longer growing, wages are no longer falling. Despite the rise in perks, wages have moved lower at this new equilibrium, making faculty jobs just as desirable as other jobs.

Learn more about how the indifference principle applies to occupation in the long run here:

brainly.com/question/16901941

#SPJ4

You might be interested in
Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. What was th
olga nikolaevna [1]

Answer:

3 times

Explanation:

Times Interest earned is a financial ratio that shows how many times an entity's net income or earnings before interest and taxes can be used to settle the company's interest expense.

It is given as the ratio of earnings before interest and tax to interest expense.

Earnings before interest and taxes is the difference of sales and operating costs.

= $400,000 - $362,500

= $37,500

Hence, the firm's times-interest-earned (TIE) ratio

= $37,500/$12,500

= 3

6 0
3 years ago
When the Untied States spend more money then it brings in, what type of spending is it?
dimulka [17.4K]
Spending that goes into our national debt. Debt spending.
6 0
3 years ago
Assume a​ Cobb-Douglas production function of the​ form: q equals 10 Upper L Superscript 0.33 Baseline Upper K Superscript 0.75.
Gnesinka [82]

Answer:

Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.

Explanation:

From the question, we have the following restated equation:

q=10L^{0.33} K^{0.75}

Where q is the output, and L and K are inputs

To determine the types of returns to scale, we increase each of L and K inputs by constant amount c as follows:

q = 10(cL)^{0.33}(cK)^{0.75}

We can now solve as follows;

q = 10c^{0.33+0.75} L^{0.33}K^{0.75}

q=c^{1.08} L^{0.33} K^{0.75}

Since 0.33 + 0.75 = 1.08 is greater than one, this production function therefore exhibits increasing returns to scale.

4 0
3 years ago
I need help with Accounting homework. I am not understanding it
PtichkaEL [24]

Answer:

ok

Explanation:

send the home work we help you

8 0
3 years ago
Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Opt
kotegsom [21]

Answer:

Option 1 is more convenient.

Explanation:

Giving the following information:

The annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever

The present value of option 1 is:

PV= 6*100,000= $600,000

To calculate the present value of option 2 we need to use the present value formula of a perpetual annuity:

PV= Cash flow/i

PV= 6,000/0.11= $54,545

There is no doubt that option 1 is better.

7 0
3 years ago
Other questions:
  • Which would be most helpful when considering a large expenditure that might require repeating payments? Check all that apply.
    7·2 answers
  • Sarah, an hr executive, observes that telework or telecommuting has been a rising trend. she considers developing a policy to al
    6·1 answer
  • Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can then sell the tor
    5·1 answer
  • In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources t
    11·1 answer
  • Who is credited with pioneering the principles of the scientific approach to management
    12·1 answer
  • You are an engineering technologist employed by H. L. Winman and Associates, and you are engaged in a lake-level measurement pro
    10·1 answer
  • Pipelines rank third after railroads and motor carriers in ton-miles transported, but most people do not recognize pipelines as
    6·1 answer
  • Dan signs a check payable to Eagle Investors, Inc., and gives it to Eagle, leaving the amount blank but authorizing Eagle to fil
    14·1 answer
  • Payroll entries.
    10·1 answer
  • The combination of product lines offered by a manufacturer is called the firm's:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!