Demographers Predict That the Average Age of the Population of the U.S.will

question 144

Multiple Choice

Demographers predict that the average age of the population of the U.S.will increase.One result will be an increase in the demand for nurses.Assume that the graph below describes the current nursing labor market in a mid-sized city,and that the market is a competitive one.
Suppose that several years ago the supply of nurses in this city was as shown as Supply A.What might explain the change from Supply A to Supply,current?

• 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 for people who would have once chosen nursing as a career.

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Definitions:

Diminishing Marginal Returns

An economic principle stating that as one factor of production increases while others remain constant, the incremental gains in output will eventually decrease.

Input

Resources such as labor, materials, and capital used in the production of goods and services.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Output

The total quantity of goods or services produced by a firm or economy over a specific period.