Use information given at the prompts, as well as your learnings from the textbook and our class discussions, to answer the questions below.

1. Albert Einstein has been credited with the statement, "There are those that understand compound interest, and there are those that pay for it." What does that mean to you? Explain.

2. Within the healthcare industry, due to shortages in labor supply, contract work for nurses has seen drastic increases in demand. Contract workers agree to travel, for $100/hour (or more) to work in areas that are short of staff. This demand leads regular nurses, who make $30-$35/hour, and work at fully staffed hospitals, to become contract workers, which creates labor shortages in markets that were not previously short. What is the eventual outcome of this shift, as it pertains to healthcare costs for the consumer? Labor supply for nurses? College nursing program enrollment? Are these effects short term, long term, or both? Explain.

3. Taxes and labor costs have grown, year over year, in California. Because of this, many companies have left, and moved to states with lower (or no) taxes, and lower labor costs - Texas and Florida in particular. What are some of the effects that we are seeing here in Florida, due to these relocations? What factor of production is being affected the most? Why? (Hint: Think about elasticity) How will this likely affect the local labor market, and why?

Textbook name (Microeconomics: Principles for a Changing WorldFifth Edition| 2020Eric Chiang)