At existing wage rates, hospitals face a shortage of registered nurses (RNs). Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs. Which of the following is likely the cause of these findings?
A. Constant marginal productivity
B. The cost disease
C. A substitution effect larger than the income effect
D. An income effect larger than the substitution effect
Answer: D
You might also like to view...
An extreme case in which a percentage change in price, no matter how large, results in zero change in quantity is called:
a. perfect inelasticity. b. perfect elasticity. c. strong elasticity. d. weak elasticity.
In order to obtain an efficient allocation of resources worldwide
A) countries that have a lot of resources should ship resources to countries that do not have a lot of resources. B) countries that have a lot of resources should not trade since poorer countries cannot compete. C) each country should produce the good they have a comparative advantage in and then trade. D) no trade among countries should occur.
A nation will neither export nor import a specific product when its:
A. domestic price equals the world price. B. export supply curve lies above its import demand curve. C. export supply curve is upsloping. D. import demand curve is downsloping.
The total welfare associated with a market that includes a government sales tax equals
A) consumer surplus plus producer surplus. B) consumer surplus plus producer surplus minus government tax revenue. C) consumer surplus plus producer surplus plus government tax revenue. D) the government tax revenue.