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The labor market for nurses though cyclical often has been characterized by prolonged periods of apparent shortages. One potential explanation for the phenomenon is the monopsony power of hospitals as employers of nurses.
a) Discuss why monopsony may (or may not) apply to nursing labor markets.
Suppose that one firm is the only employer of a certain labor service (i.e., the firm is a monopsonist). Assume its MRPL is given by L= 11 - w and the labor supply is L = W. What is the wage paid and the number of labor hours hired by the profit maxi..
The use of money as a medium of exchange represents the mostimportant service that money renders. The money supply known as M1 includes all assets that are good storesof value. The Fed's reserve requirement ratio can reduce the monetary base. The Fed..
Suppose that the following is true: "When w = v = $10 , the cost-minimizing bundle for q = 100 units of output is k = l = 20. When w = $8 and v = $10 , the cost minimizing bundle for q = 110 units of output is l = 28 and k = 19." When w = v = $20 , t..
The European Union has heavily protected its farm sector through import duties; in addition, the Union subsidizes its exports of agricultural products. If “cropland” is regarded as a factor of production and is included in the Leontief statistic (alo..
If the government wants to contract aggregate demand, it can ________ government purchases or ________ taxes.
Explain how the religious revivals of the Second Great Awakening popularized the outlook known as perfectionism, which held that both individuals and society at large were capable of indefinite improvement. How did this idea of perfectionism relate t..
We focused on online retail and services this week. Why were so many entrepreneurs initially drawn to start businesses in the online retail sector?
Consider an economy that begins with output equal to its natural level. Suppose the government enacts a decrease in income taxes (e.g. the 2001 Bush tax cuts). Explain the meaning of the natural level of output. What is the impact on consumption and ..
A $2 million school-bond issue bearing interest at 15 percent payable annually and maturing in 25 year was sold at a price which a 20 percent annual rate of return to the investors. the brokerage fee for handling the sale was 0.3 percent of the total..
illustrate the effect of capital information by comparing the prodution possibitity curves, at the present time and ten years in the future, for two economie, one with a high and the other with a low rate of capital formation.
The normal supply and demand models take the supply and demand of a particular good and show that the equilibrium price is where the two curves intersect. How do we reconcile both of these observations?
Elucidate whether each of the following events shifts the short-run aggregate-supply curve, teh aggregate-demand curve, both, or neither.
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