Consider the Labor Market for Nurses, Which Initially Is in Equilibrium

question 150

Multiple Choice

Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?

• A) The equilibrium wage will increase, and the equilibrium quantity of nurses will increase.
• B) The equilibrium wage will increase, and the equilibrium quantity of nurses will decrease.
• C) The equilibrium wage will decrease, and the equilibrium quantity of nurses will increase.
• D) The equilibrium wage will decrease, and the equilibrium quantity of nurses will decrease.

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Definitions:

Status Variables

Variables that categorize individuals based on conditions or characteristics at a specific time.

Type I Errors

Incorrectly rejecting a true null hypothesis, also known as a "false positive" finding in research.

Type II Errors

An error that occurs in statistical hypothesis testing when a false null hypothesis is not rejected, misinterpreting the absence of an effect or difference when one actually exists.

Independent Variable

A variable that is manipulated in an experiment to determine its effect on the dependent variable.