Health Mcqs

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. 

19 If doctors make $40,000 a year, what do nurses make?

a. $25,000 a year
b. $20,000 a year
c. $15,000 a year
d. $10,000 a year

20 If doctors make $80,000 a year and nurses make $40,000 a year, then

a. the clinic could serve more patients by hiring more doctors and fewer nurses.
b. the clinic could serve more patients by hiring fewer doctors and more nurses.
c. the clinic is making the correct decision because doctors are more productive than nurses.
d. the clinic is not making the correct decision because the additional patients per dollar spent on doctors is greater than the additional patients per dollar spent on nurses.
e. both a and d above

A group has chartered a bus to Atlanta. The driver costs $100, the bus costs $500, and parking in Atlanta will be $75. You have already paid $600 to reserve the bus and a driver. The driver’s fee is non-refundable, but the bus may be canceled a week in advance at a charge of $50. At $20 per ticket, at least how many people must buy tickets so that the trip need not be canceled? 55
5
8
27
34

A dry cleaner currently has 10 workers and 4 machines. The workers' wage rate is $300 per worker and the rental rate for a machine is $500. The last worker added 600 units to total output and the last machine also added 600 units to total output. Assuming that the marginal product of labor is constant between 10 and 11 workers and the marginal product of capital is constant between 3 and 4 machines, if the dry cleaner uses 11 workers and 3 machines instead, then

a. cost will be unchanged and output will increase by 300 units.
b. cost will be unchanged and output will decrease by 200 units.
c. output will be unchanged and cost will decrease by $500. 
d. output will be unchanged and cost will decrease by $200. 
e. none of the above

19 A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. The price of labor is $5 per unit and the price of capital is $20 per unit. At these input levels, another unit of labor adds 50 units of output, while another unit of capital adds 400 units of output. The firm could increase output by

a. 10 units by spending $1 more on capital and $1 less on labor.
b. 10 units by spending $1 more on labor and $1 less on capital.
c. 350 units by spending $1 more on capital and $1 less on labor.
d. 350 units by spending $1 more on labor and $1 less on capital.
e. none of the above