Suppose a heath care provider wants to ensure that its family doctors are offering patients referrals to specialists when appropriate. Offering referrals makes the doctors' work longer as they need to complete considerable paper work. Because the managers of the health care provider cannot monitor doctors during patient visits, the managers require that each doctor refers at least 40 percent of
their patients to a specialist each month or face a fine. If less than 40 percent of the patients actually need a referral to a specialist, this policy will result in all of the following occurring except which one?
A) Patients who need to see a specialist and might not have otherwise received a referral are now likely to receive a referral.
B) Doctors' time will be wasted completing unnecessary paper work.
C) Patients who do not need to see a specialist will be referred to one.
D) The doctor turnover rate at this health care provider should decrease.
D) The doctor turnover rate at this health care provider should decrease.
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According to classical economists, in recessions, not only does the unemployment rate increase, so does the
A) interest rate. B) level of fiscal stimulus. C) natural rate of unemployment. D) level of potential output.
Which of the following statements is true
a. in market equilibrium there are unconsummated value-creating transactions b. in market equilibrium there are unconsummated wealth-destroying transactions c. in market equilibrium there are no unconsummated wealth-creating transactions d. none of the above
If the substitution effect dominates the income effect, then an increase in the wage rate will increase the quantity of labor supplied by an individual
a. True b. False
Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000 . If he could have been paid $80,000 working for a computer company, his:
a. accounting profit equaled $10,000 and he would be rational to stop working as a contractor. b. accounting profit equaled $50,000 and he would be rational to continue working as a contractor. c. economic profit equaled $50,000 and he would be rational to continue working as a contractor. d. economic profit equaled -$30,000 and he would be rational to stop working as a contractor.