The Hospital Is Hiring Several New Nurses for an Expanded

question 4

Multiple Choice

The hospital is hiring several new nurses for an expanded OB unit. The manager explains to the current staff that due to a shortage of nurses, salary compression is occurring. How should the current nurses interpret this statement?

• A) There will be no raises in the near future.
• B) The new nurses' starting salaries will be close to what the current nurses are making.
• C) All nurses will receive a merit raise for training new staff.
• D) Review of salary structure done while hiring these nurses will result in raises for all current nurses.

---

Definitions:

Common Resource

A resource that is nonexcludable but rival in consumption.

Nonexcludable

A characteristic of a good or service that prevents people from being excluded from using it, often leading to challenges in private market provision.

Rival In Consumption

Goods or services that cannot be enjoyed by more than one person at the same time, as the consumption by one prevents that by another.

Common Resource

A resource like air or water that is not owned by anyone, but available for use by everyone, often leading to overuse and depletion.