The Figure Given Below Represents Demand for and Supply of Hospital

question 34

Multiple Choice

The figure given below represents demand for and supply of hospital beds in Anytown, U.S.A. , as shown by curves D and S₁ in the following figure.If the hospital receives permission to expand, its new supply curve will be S₂.Price level P₁ is the fixed prospective payment reimbursement rate paid by Medicare to the hospital, regardless of actual cost. Figure 32.3 According to Figure 32.3, the surplus of beds caused by the fixed reimbursement rate, after the expansion of the hospital is the difference between _____ and _____.

• A)Q₅;Q₁
• B)Q₅;Q₂
• C)Q₄;Q₂
• D)Q₃;Q₂
• E)Q₃;Q₁

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Definitions:

Frictionally Unemployed

Individuals who are temporarily out of work while moving between jobs or looking for their first jobs.

Voluntarily Quits

The act of an employee choosing to leave their job out of their own will, often for reasons such as a better opportunity, personal reasons, or dissatisfaction with the current job.

Full Employment

A situation where all available labor resources are being used in the most efficient way possible, leading to no cyclical unemployment.

Frictional Unemployment

Short-term unemployment that arises from the process of workers moving between jobs or into the workforce.