Asked by Gwyneth Paulino on Jun 12, 2024
Verified
If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to
A) increase the demand for health care.
B) decrease the demand for health care.
C) increase the supply of health care.
D) increase the cost of health care.
Labor Productivity
A measure of the economic output per hour of labor worked.
Health Care Industry
The sector that provides medical services, manufactures medical equipment, and develops pharmaceuticals, encompassing providers like hospitals and doctors.
Wages
Wages represent the compensation paid to employees for their labor, usually expressed as an hourly rate or annual salary, and are a key factor in employment agreements.
- Investigate the impact of supply determinants, including the practice of defensive medicine and the progression of productivity, on the costs related to health care.
Verified Answer
AD
Aberlynn DerosierJun 16, 2024
Final Answer :
D
Explanation :
When labor productivity in the health care industry rises slowly relative to wages and salaries, it means that the cost of providing health care services increases. This is because the industry has to pay more for labor without a corresponding increase in productivity. As a result, the cost of health care services is likely to increase, reflecting the higher labor costs.
Learning Objectives
- Investigate the impact of supply determinants, including the practice of defensive medicine and the progression of productivity, on the costs related to health care.