Physician Age After Expenses and Before Taxes Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Physician Age After Expenses and Before Taxes Assignment
5.1 The following two tables are mean physician net income by physician age after expenses and before taxes (in thousands of dollars), by year and by specialty.
Table A: Physician Age and Earnings ($ thous.)
1973 1974 1975 1977 1978 1979 1981 1982 1983 Physician age Less than 36 years 32.8 40.6 43.7 49.6 49.0 64.3 62.5 73.3 77.0 36–45 years 51.9 57.1 62.9 69.9 70.1 87.5 98.1 100.2 110.2 46–55 years 55.0 58.9 62.3 67.7 76.2 87.1 110.8 116.5 133.6 56–65 years 48.3 49.3 54.1 58.7 65.3 75.9 95.6 99.5 103.1 66 or more years 31.9 34.0 35.0 36.8 44.4 54.9 68.3 64.3 71.9
Table B: Physician Specialty and Earnings ($ thousands.)
Specialty All Physicians* GP/FP Int. Med. Surg. Ped. Ob./Gyn. Rad. Psych. Anesth. Path. Physician age Less than 36 years 77.0 57.9 68.0 108.8 44.7 78.9 100.3 64.9 126.9 90.3 36–45 years 110.2 68.2 95.1 146.3 81.2 118.7 150.1 81.7 146.1 109.9 46–55 years 133.6 77.8 125.4 183.8 81.2 139.4 161.6 90.4 161.3 134.1 56–65 years 103.1 76.4 98.3 120.0 73.6 129.0 171.5 79.0 119.8 141.3 66 or more years 71.9 50.0 75.0 94.8 59.4 89.5 — 62.1
- Based on data reported in these two tables, please compute the present value of a medical education, assuming a 3 percent real discount rate. b. Based on the same data, please compute the internal rate of return on medical education. 5.2 Suppose a country has a total of three cities: city A has a population of 550,000, and cities B and C have populations of 200,000 and 10,000, respectively. Say there are 60 physicians in the country. Assume that per capita demand for medical care is the same in the three cities, and the cities are equally desirable places in which to practice medicine and live. a.
How will the physicians be allocated among the three cities if physicians earnings are to be equalized among the cities? b. Suppose physician supply increased by a third in the country. How would this affect the allocation of physicians among the cities? 5.3 Suppose the country’s national health insurance authority cuts the price it pays physicians for performing a procedure. Use a goods-leisure analysis (goods or income on one axis and leisure on the other) to answer the following questions: a. A backward-bending supply curve of labor can be derived from the indifference curve analysis of goods and leisure. Explain using graphs (one for the indifference curve analysis and the other for the supply of labor function corresponding to the indifference curve analysis).
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