Preface:For years free trade agreements have put manufacturing workers in the U.S. in direct competition with their developing country counterparts with thepurpose of driving down wages in the U.S. and bringing in cheaper imported goods. All the while highly paid service sector workers such as lawyers,doctors, CPAS, and the like are shielded from competition from developing country service sector workers who would be glad to come to the U.S. andenjoy relatively higher wages. This effectively means that highly paid professionals get to enjoy the benefits of cheaper imported goods, while still havingtheir inflated salaries. This has exacerbated inequality in the U.S. due to the fact that manufacturing workers who have effectively had their wages drivendown still have to pay for expensive professional services that have not commensurately come down. This is not only economically inefficient it is ethicallywrong due to the fact that lawyers are the ones who actually author free trade agreements and corporate and special interest groups representing theprofessional service sector are usually at the negotiating table when they are being authored.U.S. doctors have some of the highest salaries in therworld as evidenced by the graph below that compares general practitioner pay amongst fellow OECDmember countries:(Note: The data is old due the fact that the American Medical Association (AMA) no longer collects earnings data for general practitioners (GPs))Figure 1. Remuneration of GPs in USD PPP, selected OECD countries, 2004 (or closest year available)United States (2003)146United Kingdom (2004)121Netherlands (2004)Germany (2004)120112lceland (2005)109Austria (2003)*108Luxembourg (2003y108Switzerland (2003y**108Canada (2004)106France (2004)84Finland (2004)56ISelf-employedSalariedCzech Republic (2004)*39100200150USD PPP, thousands50 Read the following article on the issues surrounding the international medical graduate licensing process:Path to United States Practice Is Long Slog to Foreign Doctors.pdfAnswer the following questions:1. Do you think the licensing process for international medical graduates is an unnecessary hurdle meant to shield U.S. doctors from foreign competition?If so explain why. If not explain why. Please reference the article in your response.2. Suppose we increase the overall number of doctors in the U.S. in all fields and specialties of medical practice by equal percentages, which would shiftthe supply curves in all the respective medical practice markets. Suppose we were to analyze two separate medical practice markets:1. Plastic Surgery2. CardiologyWhich markets' price would be most impacted by this increase in the supply of doctors? Which markets' quantity would be most impacted by this increasein the supply of doctors?Explain your reasoning using economic logic learned in chapter 6. You may use the formulas or graphs from chapter 6 to explain your position, however, itis not required.

A intermediate good is an item used to deliver a ginal goods or completed item additionally alluded…

ng country service sector workers who would be glad to come to vely higher wages. This effectively means that highly paid professionals get to enjoy the benefits of cheaper imported goods, w ed salaries. This has exacerbated inequality in the U.S. due to the fact that manufacturing workers who have effectively had the mave to pay for expensive professional services that have not commensurately come down. This is not only economically ineffic to the fact that lawyers are the ones who actually author free trade agreements and corporate and special interest groups repr I service sector are usually at the negotiating table when they are being authored. s have some of the highest salaries in therworld as evidenced by the graph below that compares general practitioner pay amon untries: data is old due the fact that the American Medical Association (AMA) no longer collects earnings data for general practitione muneration of GPs in USD PPP, selected OECD countries, 2004 (or closest year available) United States (2003r 146 United Kingdom (2004)* 121 Netherlands (2004y 120 Germany (2004) kceland (2005) Austria 2003y* 112 109 108 Luxembourg (2003r 108 aitzedand 2003* 108

ng country service sector workers who would be glad to come to vely higher wages. This effectively means that highly paid professionals get to enjoy the benefits of cheaper imported goods, w ed salaries. This has exacerbated inequality in the U.S. due to the fact that manufacturing workers who have effectively had the mave to pay for expensive professional services that have not commensurately come down. This is not only economically ineffic to the fact that lawyers are the ones who actually author free trade agreements and corporate and special interest groups repr I service sector are usually at the negotiating table when they are being authored. s have some of the highest salaries in therworld as evidenced by the graph below that compares general practitioner pay amon untries: data is old due the fact that the American Medical Association (AMA) no longer collects earnings data for general practitione muneration of GPs in USD PPP, selected OECD countries, 2004 (or closest year available) United States (2003r 146 United Kingdom (2004)* 121 Netherlands (2004y 120 Germany (2004) kceland (2005) Austria 2003y* 112 109 108 Luxembourg (2003r 108 aitzedand 2003* 108

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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