If government raised taxes on the rich and this resulted in a decrease in productivity, the increase in taxes will still definitely make society better off
Indicate whether the statement is true or false
FALSE
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An increase in the number of nursing homes and community health centers and the expansion of home care has led to an increase in the demand for nurses. At the same time, improving opportunities for women in business have reduced the supply of nurses. Hospitals, the major employers of nurses, have resisted wage increases. The resulting situation could be described as
a. the cost disease of the service sector. b. a shortage of nurses. c. the problem of auxiliary restrictions. d. the wage floor problem.
Unemployment insurance is often criticized because workers can extend the amount of time they are unemployed and thus increase the cost of the program. This phenomenon is best described as
a. rent-seeking behavior. b. moral hazard. c. free riding.