BUSINESS 3011 – Scientific evidence suggests that nurse

Subject: General Questions    / General General Questions
Question

1. Scientific evidence suggests that nurse practitioners (NPs) and physician assistants (PAs) can be considered as

substitutes in providing many types of medical care. If PAs’ salaries have grown substantially during the last 6 months,

while there has been no change in the NPs’ salaries, what would happen in the market for nurse practitioners’ services?

a. Supply of NPs to hospitals will decrease.

b. Supply of NPs to hospitals will increase.

c. Hospitals’ demand for NPs will decrease.

d. Hospitals’ demand for NPs will increase.

e. The increase in the salaries of PAs should have no effect on hospitals’ demand for or supply of NPs’ services.

2. If a hospital has economies of scale with respect to production, then:

a. it cannot have economies of scope.

b. it must have economies of scope.

c. it can only have economies of scope for those activities for which it has economies of scale.

d. it can only have economies of scope for those activities for which it does not have economies of scale.

e. it may or may not have economies of scope.

3. Hospital A does emergency care only, and has total costs of $1,000,000 for output of 100 patients per day. Hospital

B does surgery only and has total costs of $10,000,000 for 100 surgeries per day. Hospital C does both emergency care

(100 patients per day) and surgeries (100 per day) with total costs of $10,500,000. We can say that

a. Hospital A has economies of scale.

b. Hospital B has economies of scale.

c. Hospital C has economies of scale.

d. Hospital C has economies of scope.

e. None of the above.

4. Hospital D does emergency care only, and has total costs of $1,000,000 for output of 100 patients per day, and total

costs of $1,500,000 for 200 patients per day. Hospital D has:

a. economies of scale.

b. diseconomies of scale.

c. economies of scope.

d. diseconomies of scope.

e. both economies of scale and economies of scope.

5. Hospital E has total costs of examining and running lab tests for 200 patients of $2,000,000. Hospital F examining

200 patients for $1,250,000 and sends the results to the laboratory for $650,000. We can say that

a. Hospital E has economies of scale.

b. Hospital F has economies of scale.

c. Hospital E has economies of scope.

d. Hospital F has economies of scope.

e. It is more efficient for the health care system to use Hospital F and the lab than Hospital E.

6. Proponents of supplier-induced demand (or physician-induced demand) argue that an increase in the number of

physicians leads to an______, which then leads to _______.

a. increase in demand; an increase in supply.

b. increase in demand; a decrease in supply.

c. increase in supply; an increase in demand.

d. increase in supply: a decrease in demand.

e. None of the above.