Question

The barriers to entry to practicing medicine contribute to the higher returns to medical training. T or F

The Immigration Act of 1965 made it harder for internationally trained physicians to practice medicine in the U.S. T or F

Most physicians in the United States today have only the basic MD degree. T or F

A medical firm's total cost is $2000 at 16 patient visits. Its total variable cost is $1500 at 16 patient visits. What is the total fixed cost at 16 patient visits?  

		16
		$500
		$1,500

By 1970, the returns to physician training, adjusted for hours worked, had become much higher than the return to lawyers.  T or F

Vaccines and generic drugs are examples of cost-increasing technologies. T or F

The following explain(s) why U.S. firms have successful technological innovations:

		A The existence of research institutions
		B Government support for research
		C Well-enforced patent protection
		D All of the Above
		E Historically generous insurance payers

When discussing short run production, the following assumption(s) should be made:

		A Capital is not fixed.
		B The only two inputs are personnel hours and a capital good.
		C The firm produces more than one output of medical services.

The short run cost curve shifts downward when costs increase. T or F

Answer 1

The barriers to entry to practicing medicine contribute to the higher returns to medical training. TRUE

The Immigration Act of 1965 made it harder for internationally trained physicians to practice medicine in the U.S. FALSE
President Lyndon Johnson's immigration act of 1965 was mainly responsible into bringing approximately 57 Million immigrants into America. It included international skilled labor, doctors, physicians, engineers, etc, all migration to US very easily.

Total cost = Total fixed cost + Total variable cost.
2000 = Total fixed cost + 1500
Total fixed cost = 500

By 1970, the returns to physician training, adjusted for hours worked, had become much higher than the return to lawyers.  TRUE

Vaccines and generic drugs are examples of cost-increasing technologies. FALSE
Vaccinations and generic drugs are meant to reduce the cost of diseases.

The following explain(s) why U.S. firms have successful technological innovations:
Answer is D - ALL OF THE ABOVE
Existance of research institutions is the very basic requirement to induce innovation, there must be enough government support also as research requires large amount of funding that can be provided by government. A well enforced patent protection system would ensure that nobody copies your innovation and sells in the market, so it acts as incentive and also gives monopoly like power, it motivates firms to innovate and invent more.

When discussing short run production, the following assumption(s) should be made:
The only two inputs are labor (personnel hours) and capital.

The short run cost curve shifts downward when costs increase. FALSE