Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 5, Problem 13AP
(a)
To determine
Source of discriminatory action.
(b)
To determine
Source of discriminatory action.
(c)
To determine
Source of discriminatory action.
(d)
To determine
Source of discriminatory action.
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Explain why market forces are likely to eliminate discrimination
Consider the standard set up for thinking about statistical discrimination from last class (groups have same average productivity, but one group has a lower slope on the signal component – call this group women). Neither group has a zero y-intercept. A government issues a minimum wage requirement. Which of the following is true:
A. At a low enough minimum wage, employers will hire men and women of any signal type. B. At a low enough minimum wage, employers will hire high signal men and low signal women. C. At a low enough minimum wage, employers will hire women of any signal type and only higher signal men. D. At a high enough minimum wage, employers will hire low signal men and high signal women.
When Rosenthal writes about how future payments for health care services depend on current charges and the incentive is for doctors to perpetually increase rates, what economic rule of the dysfunctional medical market is she referring to?
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