An Emergency Department (ED) Manager Interviews and Hires a Candidate

question 17

Multiple Choice

An emergency department (ED) manager interviews and hires a candidate who reports having several years of ED experience. Soon after hire, the nurse makes a series of errors and harms several clients. When investigating these errors, the nurse manager discovers the nurse falsified his experience and credentials. Is the hospital liable for this nurse's actions?

• A) Yes, the hospital could be liable for negligent hiring if credentials were not checked.
• B) Yes, the hospital could be liable but only if it did not properly train the nurse.
• C) No, the nurse is liable because information about experience was falsified in the interview.
• D) Yes, the hospital is liable for all errors committed by nursing staff.

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Definitions:

General Equilibrium Analysis

A method in economics that attempts to understand how supply and demand interact across multiple markets simultaneously, and how they reach a state of balance.

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.