Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive.
If supply shifts from S0 to S1 and demand shifts from D0 to D1, then
A. wages will have to rise to $60 to avoid a nursing shortage.
B. a wage of $50 will lead to an excess supply of nurses.
C. a wage of $40 will be sufficient to achieve equilibrium.
D. wages will have to rise to $50 to avoid a nursing shortage.
Answer: A
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The ________________ program has often been popular with both economists and the general public because of the way it effectively increases the payment received for work. On average, benefits from this program come to less than $2,300 per family with children.
a. Temporary Assistance for Needy Families (TANF) b. Supplemental Nutrition Assistance Program (SNAP) c. Aid to Families with Dependent Children (AFDC) d. Earned Income Tax Credit (EITC)
It is true in monopoly pricing that the
a. sky is not the limit. b. market cannot impose a price on a monopolist. c. monopolist is a price maker. d. All of the above are correct.
The tragedy of the commons refers to the:
A. overuse of resources that have no price. B. failure of the Coase theorem when negotiation is costly. C. under production of goods that have external benefits. D. overuse of resources that have no cost.
Suppose that the consumer price index has risen from 100 to 200. From this information we can conclude that
a) each person's real income was cut in half b) consumer incomes are doubled c) the prices in an average consumer's basket have doubled d) all consumer good prices are doubled e) all prices in the economy are doubled