Increasing Nurse Labor Supply via Incentives

Steps:

• Identify goal: Shift rightward the supply curve for nurses to increase quantity supplied.
• Recall labor supply determinants: Wages, working conditions, training costs, and non-monetary factors.
• Evaluate options: Assess how each affects willingness to enter or remain in nursing profession.
• Select best: Choose policy that most directly boosts attractiveness of nursing.

Why B is correct:

• Improving working conditions raises non-pecuniary benefits, shifting labor supply curve right per economic theory of labor markets.

Why the others are wrong:

• A: Extending training increases entry barriers, shifting supply left.
• C: Raising minimum wage affects low-skill jobs broadly but not specifically nurses, with unclear impact on supply.
• D: Reducing grants raises training costs, deterring entrants and shifting supply left.

Final answer: B