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Back to Chapter 14 Practice Questions
1. What factors tend to raise the rate of return to medical education?
2. In a well functioning, competitive market for medical education,
how would the tuition for medical education respond to
· an increase in the public's demand for health care?
· a decrease in the cost of medical education textbooks?
· an increase in the time required to obtain a medical education?
3. Are tuition rates above, below, or equal to the marginal cost of medical education? What does this tell us about the number of medical graduates as compared to the optimal number of graduates?
4. How does the goal of prestige maximization influence the number of medical graduates and the kinds of practices they take upon graduation?
5. If there are significant external benefits from medical education, what public policy problems would these externalities create in medical education? How could the government correct those problems? (Does our author believe these externalities are significant?)
last updated May 6, 2002, by Jim Frederick
copyright 2002 Jim Frederick