Question

1.Discrimination against African-American workers in the labor market will:

a)shift the demand curve for these workers to the right, and their wages will rise.

b)shift the demand curve for these workers to the right, and their wages will fall.

c)shift the demand curve for these workers to the left, and their wages will fall.

d)shift the demand curve for these workers to the left, and their wages will rise.

2.

What impact do private insurance companies and Medicare have on national medical costs?

1Medical costs go up because insurance leads to an increase in the quantity demanded of medical services.

2Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required.

3Medical cost are unaffected by insurance companies.

4Medical costs go down because the insurance company pays the bill.

Answer 1

1. c)shift the demand curve for these workers to the left, and their wages will fall.
(Discrimination would decrease their demand so demand curve shifts to the left showing a decrease in their wages.)

2. 1Medical costs go up because insurance leads to an increase in the quantity demanded of medical services.
(Medical costs will increase because insurance increases the demand for medical services.)