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
Economics
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Most economists would agree with which statement about fiscal policy?
A. It's useful when few resources are unemployed due to an aggregate demand shock. B. It's useful when a lot of resources are unemployed due to a real shock. C. It's useful when few resources are unemployed due to a real shock. D. It's useful when a lot of resources are unemployed due to an aggregate demand shock.
Economics
What are the common characteristics of developing countries?
What will be an ideal response?
Economics