Assume That the Graph Below Describes the Current Labor Market

question 26

Multiple Choice

Assume that the graph below describes the current labor market for nurses in a mid-sized city and that the labor market is perfectly competitive. Suppose that several years ago the supply of nurses in this city was S₀. What might explain the change from S₀ to S₁?

• A)an increase in nurses' wages
• B)a decrease in nurses' wages
• C)increased immigration of people trained as nurses in other countries.
• D)increased employment opportunities outside of nursing.

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Definitions:

Foreigners

Individuals who come from a different country or nation than the one being referred to.

Carry Trade

A financial strategy that involves borrowing at a low interest rate and investing in an asset that provides a higher rate of return.

Interest Rates

Interest rates represent the cost of borrowing money or the return on invested funds, expressed as a percentage of the principal.

Borrowing

The act of receiving something with the intention of returning it or its equivalent, often referring to money with interest.