Economic Tool and Concepts

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Economic Tool and Concepts HCS/552 August 19, 2013 Economic Tool and Concepts The health care industry has been experience for many century the shortage of nurses. It is perceive by the health care industry the shortage of nursing supply than the demand across the country. The demand for nurses in every health care organization growth in a daily basic as the technology advance. The consumers are always demanding for more personalize and quality of health care services at the time they are seeking for health care delivery creating nurses supply to be less in every health organization. A few probable reasons for nursing shortage within the health care industry can be the number of nurses in the workforce with a close retiring date,…show more content…
According to Getzen (2007), “An economist will use marginal analysis to optimize, moving toward a maximum net benefit in small steps. To apply principles of maximization and use mathematics to estimate values, economists must abstract from other elements, ignoring some of the complexity of medical conditions and framing the issues in terms of dollars” (Chapter 3, p. 55). Wage Elasticity The wage elasticity curve rely on the amount of the supply that reacts to the variation in changes in wage. According to Adhia (April 2003),“It is found that the short term wage elasticity of supply is not significantly different from zero, and hence the employment trends in the nursing labor market follow a cobweb pattern, where the quantity supplied adjusts to exogenous increases in demand, but with a lag, causing shortage in the meanwhile” (para. 1). The nurses wage elasticity will various by the amount of alternative work by substitutability of job outside the health care facility and the ability to move to different location to perform other jobs than are not hospital base job. Based on this definition the health care industry will be measured the wage elasticity by the percentage of increase spending in nurse’s wage to improve the nurse’s shortage relative to each nurses. Conclusion The
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