Suppose the following two events occur in the domestic market for radiologists:
a. Some hospitals are outsourcing some radiology services such as reading x-rays.
b. Some medical schools have closed down their radiology departments as fewer students enroll in this field.
What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?
A) The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate.
B) The equilibrium wage and the equilibrium quantity of radiologists fall.
C) The equilibrium wage and the equilibrium quantity of radiologists rise.
D) The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate.
D
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Recall the Application. If the Federal Reserve was making a decision on changing interest rates
A) the Board of Governors would typically make an equally good decision as would the chairman acting on his own. B) the Board of Governors would typically make a better decision than the chairman acting on his own. C) the chairman, acting alone, would typically make a better decision than the Board of Governors. D) neither the Board of Governors nor the chairman, acting alone, would tend to make accurate predictions.
Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent
Assets Liabilities Reserves + $2,000 Deposits + $2,000 As a result of the transaction, the bank can make a maximum loan of A) $0. B) $200. C) $1,800. D) $2,000.