Demand for health services drives doctor earnings

Steps:

• Examine factors influencing wages in government health services, focusing on labor market dynamics.
• Apply supply and demand principles: earnings rise with higher demand for services relative to supply.
• Evaluate each option's impact on demand or supply of medical labor.
• Select the option that increases demand without expanding supply.

Why B is correct:

• Per the law of supply and demand, greater need for health care boosts demand for doctors, raising their wages to meet the shortfall.

Why the others are wrong:

• A: More graduating doctors increases supply, potentially lowering earnings due to competition.
• C: Reduced government spending cuts budgets for salaries, decreasing earnings.
• D: Greater health awareness reduces illness and health care demand, lowering need for doctors.

Final answer: B