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QUESTION 2 Some healthcare economists hypothesize that nurse practitioners (NPs) and physician assistants (PAs) can be considered as substitutes in providing many types of medical care. When hospitals make hiring decisions, the "price (ie salaries) they have to pay for a new NP versus a new PA is one of the deciding factors. If PAs' salaries have grown substantially during the last 6 months, while there has been no change in the NPs' salaries, what would happen in the market for nurse practitioners services if the hypothesis is tollowed? A. Supply of NPs to hospitals will increase OB Supply of NPs to hospitals will decrease C Hospitals' demand for NPs will increase. o D Hospitals' demand for NPs will decrease O E The increase in the salaries of PAs should have no effect on hospitals demand for or supply of nurse practitioners' services QUESTION 3 When a money price cannot be assigned to a health care action such as a choice an individual makes to exercise to maintain a healthy cardiovascular system, economists use the concept of opportunity cost which values the action A according a rule of thumb B as the next best altemative the individual gives up in order to exercise C at the median gym membership price in the residential area at zero price as the number of years expected to be added to the person's life due to exercise

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