Question 1

Jefferson County has 200,000 residents.During any given year,2% of the population will develop a medical condition that requires 10 hours of physician treatment.Assuming the average physician works 2,000 hours per year,how many physicians are needed in Jefferson County?

Accepted Answer

A)  6
B)  12
C)  14
D)  20 D

Question 2

Suppose the demand for labor is w = 300 - 2Q and the supply of labor is w = Q.If a price floor is set at $50,then the equilibrium

Accepted Answer

A)  Wage is $100 and quantity is 100
B)  Wage is $100 and quantity is 50
C)  Wage is $50 and quantity is 100
D)  Wage is $50 and quantity is 50 A

Question 3

Suppose Medicare no longer subsidizes residency programs.Instead,the residents must pay for the education.Who will pay more,general practitioners or specialists?

Accepted Answer

The rate of return of residency education is greater for specialists than for general practitioners.Therefore,specialists should pay more than general practitioners to attend residency training.Further,if there is a shortage in general practitioners,hospitals should pay potential students to enter general practitioner residency programs and charge potential students to enter into specialists' programs.

Question 4

If the marginal product per dollar of physicians is lower than practical nurses,we should:

Accepted Answer

A)  hire more physicians,because they are more productive
B)  hire more practical nurses,because their marginal productivity per dollar is higher
C)  hire more of each,because they have positive marginal productivity per dollar
D)  hire fewer of each to lower costs

Question 5

Which of the following will occur if labor demand and supply simultaneously increase?

Accepted Answer

A)  An increase in equilibrium wages and ambiguous change in the equilibrium quantity of labor
B)  An ambiguous change in equilibrium wages and equilibrium quantity of labor
C)  An ambiguous change in equilibrium wages and an increase in the equilibrium quantity of labor
D)  A decrease in equilibrium wages and an increase in the equilibrium quantity of labor

Question 6

Assume the government imposes price controls on physician wages where the wage cannot exceed $120.Let the demand for labor be w = 500 - Q and the supply of labor is w = 3Q.

Accepted Answer

A)  Wage is $375 and quantity is 125
B)  Wage is $375 and quantity is 40
C)  Wage is $120 and quantity is 380
D)  Wage is $120 and quantity is 40

Question 7

Regulators and advocates argue that licensure is appropriate because it:

Accepted Answer

A)  Ensures that patients get high-quality care
B)  Increases remuneration to those with the licenses
C)  Reduces the incidence of deficient care
D)  Both a and c

Question 8

The number of physicians per 100,000 has risen between 1980 to 2007 by

Accepted Answer

A)  More than 50%
B)  Between 50% and 25%
C)  Less than 25%

Question 9

Suppose the federal government would like to protect health professional jobs by only allowing U.S.citizens to hold positions in hospitals,regardless of where they trained.Is this a good policy? Why or why not?

Accepted Answer

The answer of Suppose the federal government would like to...

Question 10

Explain how the current market for residencies is anticompetitive and how market competition would correct the current situation.

Accepted Answer

The answer of Explain how the current market for residencies...

Question 11

Which of the following is true?

Accepted Answer

A)  Dynamic shortages are resolved over time
B)  Static shortages are resolved overtime
C)  Both a and b
D)  Neither a nor b

Question 12

Suppose a student is trying to decide if they should become a physician or an accountant.As an accountant,the student would earn $75,000 after four years of education.On the other hand,if the student decides to become a physician,they would need to attend school for 11 years.Each year of school costs $20,000 in both professions.As a physician,the student would earn $100,000.In both cases,the student only has 20 years to work and/or attend school.What should they do?

Accepted Answer

The answer of Suppose a student is trying to decide...

Question 13

Policy intervention is needed to resolve a

Accepted Answer

A)  Dynamic shortage
B)  Static shortage
C)  Both a and b
D)  Neither a nor b

Question 14

Suppose the demand for labor is w = 300 - 2Q and the supply of labor is w = Q.If a price floor is set at $200,then the equilibrium

Accepted Answer

A)  Wage is $100 and quantity is 100
B)  Wage is $100 and quantity is 50
C)  Wage is $200 and quantity is 100
D)  Wage is $200 and quantity is 50

Question 15

What are the potential pitfalls of using the ratio technique to determine shortages/surpluses?

Accepted Answer

The answer of What are the potential pitfalls of using...

Question 16

Which of the following is a normative statement?

Accepted Answer

A)  Nonprofit hospitals are inefficient
B)  Physicians should be more cost conscious
C)  Government-sponsored health insurance will provide lower premiums
D)  All of the above

Question 17

Bullet County has 100,000 residents.During any given year,2% of the population will develop a medical condition that requires 10 hours of physician treatment.Assuming the average physician works 2,000 hours per year,how many physicians are needed in Bullet County?

Accepted Answer

A)  6
B)  10
C)  14
D)  20

Question 18

Friedman and Kuznets found that physicians earn

Accepted Answer

A)  32% less than dentists
B)  About the same as dentists
C)  32% more than dentists

Exam 14: Health Manpower Shortages and Surpluses: Definitions, measurement, and Policies