Suppose the Following Two Events Occur in the Domestic Market

question 60

Multiple Choice

Suppose the following two events occur in the domestic market for radiologists:
a. Some hospitals are outsourcing some radiology services such as reading x-rays.
b. Some medical schools have closed down their radiology departments as fewer students enroll in this field.
What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?

• A) The equilibrium wage and the equilibrium quantity of radiologists rise.
• B) The equilibrium wage and the equilibrium quantity of radiologists fall.
• C) The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate.
• D) The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate.

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Definitions:

Accounting Commission

An accounting commission typically refers to a regulatory body or group tasked with overseeing accounting practices and standards.

Hybrid Rule Making

A type of rule making that combines features of formal and informal rule making; consists of publication in the Federal Register, a written-comment period, and an informal public hearing with restricted cross-examination.

Commissioners

Officials charged with the administration of certain laws and regulations, often within a specific governmental agency or commission.

Informal Agency Rule Making

A process used by administrative agencies to create rules and regulations through procedures that are less formal than the traditional rulemaking process, often involving less public input.