Assume That the Graph Below Describes the Current Labor Market

question 18

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. If supply shifts from S₀ to S₁and demand shifts from D₀ to D₁, then

• A)wages will have to rise to $60 to avoid a nursing shortage.
• B)wages will have to rise to $50 to avoid a nursing shortage.
• C)a wage of $40 will be sufficient to achieve equilibrium.
• D)a wage of $50 will lead toan excess supply of nurses.

Recognize the importance of framing and context in the application of heuristics.

Analyze the role of stereotypes and misinformation in shaping judgments based on the availability heuristic.

Understand the interdependencies between humans and their physical environment.

Analyze demographic changes and their implications on society.

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Definitions:

Fair Value Adjustment

A process of adjusting the book value of an asset or liability to reflect its current market value, used in accounting to ensure the fair presentation of financial statements.

Trading Portfolio

A collection of financial assets, such as stocks or bonds, held by an institution or individual for the purpose of realizing profits from short-term price movements.

Unrealized Gain or Loss-Income

The increase or decrease in the value of an investment that has not yet been sold for a profit or loss.

Other Expenses

Costs incurred by a business that do not fit into primary operational categories, such as administrative or selling expenses.