Suppose the number of medical school graduates continues to increase over the next decade. Which of the following is true?
a. Physicians' salaries must fall.
b. Physicians' salaries must rise.
c. Physicians' salaries will fall only if the demand for medical services falls.
d. Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises.
e. Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.
E
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Between the 1970's and 1998, immigrants:
A. Were more likely to receive public assistance than people born in the United States B. Were less likely to receive public assistance than people born in the United States C. Were just as likely to receive public assistance as people born in the United States D. Did not qualify for public assistance
If a 1 percent increase in the price of X increases the quantity demanded of Y by 2 percent, then X and Y are
A) complements and the cross elasticity of demand equals 2. B) substitutes and the cross elasticity of demand equals 1/2. C) substitutes and the cross elasticity of demand equals 2. D) complements and the income elasticity of demand equals 2. E) normal goods and the income elasticity of demand of each equals 2.
In the above figure, if the market is competitive and unregulated, then at the equilibrium amount of output the marginal social benefit is
A) less than the marginal cost to producers. B) greater than the marginal social cost. C) equal to the marginal cost to producers. D) equal to the marginal private benefit from consumption.
"Ceteris paribus" is a Latin expression that means "holding everything else constant."
a. True b. False Indicate whether the statement is true or false