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Question
Given the information just provided, which of the following statements is true?a. If wages increased by $1, there would be an excess demand of 7 workers.
b. If wages increased by $1, there would be an excess supply of 5 workers.
c. If wages decreased by $1, there would be an excess demand of 5 workers.
d. If wages decreased by $1, there would be an excess supply of 7 workers.
e. none of the above
Answer
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Related questions
Q:
Which of the following is a true statement about trends in the U.S. labor force between 1950 and 2000?a. The male labor force participation rate has increased steadily.b. The unemployment rate peaked during the Carter administration (1976-1980).c. The female labor force participation rate has declined.d. The increase in the labor force participation rate was caused by women joining the labor force.e. The size of the labor force has not grown much over the past 50 years.
Q:
Which of the following is not a true statement about the Consumer Price Index (CPI)?
a. The CPI is based on a fixed bundle of goods.
b. The CPI is not adjusted spatially and has the same value for all urban areas.
c. The CPI is used to calculate cost of living adjustments.
d. The CPI overstates true changes in the cost of living, because it does not allow for substitution among goods.
e. The CPI does not allow for the inclusion of new goods.
Q:
Which of the following groups are not part of the working population?
a. individuals over the age of 16 who can work but currently are not looking for a job
b. individuals over the age of 16 and currently working
c. individuals over the age of 16 and are in prison
d. individuals over the age of 16 who are not working but are looking for a job
e. both A and C
Q:
Which of the following is not true about New Institutional Economics?
a. It is made up of agents who use rational choice.
b. It examines how individuals within the household behave.
c. It considers how workers who are already employed make their decisions regarding how much or how hard to work.
d. It is a combination of law, economics, and organization.
e. It assumes agents have a limited ability to calculate the consequences of their actions.
Q:
The marginal concept is important in economics because
a. it provides a convenient means of locating an optimal choice.
b. it assumes individuals operate using limited rationality.
c. it allows for economists to predict how an agent will respond to a change in their environment.
d. A and C only
e. all of the above
Q:
If one small restaurant decreases its demand for cooks, then
a. the wages of cooks will increase, and employment of cooks will decrease.
b. the wages of cooks will decrease, and employment of cooks will increase.
c. the wages of cooks will remain the same, and employment of cooks will decrease.
d. the wages of cooks will remain the same, and employment of cooks will increase.
e. the wages of cooks will remain the same, and employment of cooks will remain the same.
Q:
What is the equilibrium level of employment?
a. 7
b. 8
c. 9
d. 10
e. 11
Q:
Which of the following is NOT a reason that the real value of the minimum wage fluctuates considerably over time?
a. Sporadic changes to the nominal minimum wage.
b. Inconsistent enforcement of minimum wage legislation.
c. Inflation.
d. The political difficulty with which changes in the minimum wage occur.
e. Changes in prices over time.
Q:
______ in the minimum wage could discourage schooling investments by making education ______ attractive relative to work.
a. An increase; more
b. An increase; less
c. A decrease; more
d. A decrease; less
e. There is no causal relationship between the minimum wage and education.
Q:
In an economy with two distinct sectors, the imposition of a minimum wage above the competitive equilibrium wage in one of those sectors will:
a. reduce the demand for labor in the non-minimum-wage sector.
b. cause workers to move to the non-minimum-wage sector.
c. decrease the equilibrium wage in the minimum-wage sector.
d. increase unemployment in the non-minimum-wage sector.
e. decrease employment in the non-minimum-wage sector.
Q:
In an economy with two distinct sectors, the imposition of a minimum wage above the competitive equilibrium wage in one of those sectors will NOT:
a. reduce the demand for labor in the minimum-wage sector.
b. cause workers to move to the non-minimum-wage sector.
c. increase employment in the non-minimum-wage sector.
d. decrease employment in the minimum-wage sector.
e. increase unemployment in the non-minimum-wage sector.
Q:
In practice, the ______ of the minimum wage is usually ______.
a. coverage; incomplete
b. coverage; complete
c. enforcement; complete
d. effect; trivial
e. enforcement; trivial
Q:
In which type of market are all workers and firms price takers?
a. Oligopoly
b. Monopoly
c. Monopsony
d. Competitive
e. Monopolistic competition
Q:
When there are compensating wage differentials,
a. individuals no longer maximize utility.
b. firms no longer maximize profits.
c. all workers receive the same non pecuniary benefits.
d. workers are homogeneous.
e. there are a large number of firms.
Q:
If a firm makes adjustments to create a safer working environment, then
a. workers will demand higher wages.
b. workers will accept lower wages.
c. the firm will attract more skilled workers.
d. the firm is no longer maximizing profits.
e. answers B and D
Q:
Instead of a wage increase, members of a police union agreed to keep the same pay in exchange for a 20-year retirement program. What is this an exmaple of?
a. fringe benefits
b. Pareto optimality
c. efficiency
d. compensating wage differential
e. A and D
Q:
Suppose the government decreases the federal income tax. What happens to the labor market equilibrium?
a. The labor demand schedule shifts downward.
b. The labor demand schedule shifts upward.
c. The labor supply schedule shifts downward.
d. The labor supply schedule shifts upward.
e. The labor demand and labor supply schedule both shift downward.
Q:
Fewer women are taking time off to raise their children. What does this imply about their labor market activities?
a. Women will acquire less on-the-job training and earn less over their lifetime.
b. Women will acquire less on-the-job training and earn more their lifetime.
c. Women will acquire less on-the-job training and earn the same earnings over their lifetime.
d. Women will acquire more on-the-job training and earn less over their lifetime.
e. Women will acquire more on-the-job training and earn more over their lifetime.
Q:
Suppose a worker receives firm specific training, but his wages do not increase afterward. Why?
a. Specific training has no value to the firm.
b. Specific training does not increase the worker's productivity.
c. Specific training does not increase the leverage a worker can use to raise his wage.
d. Specific training is inefficient.
e. The worker receives the benefit by the employer paying for the costs of training.
Q:
Suppose a worker can earn $25,000. He obtains specific training, raising his value by $10,000. If the worker can negotiate after the training, which of the following may be his wage?
a. $15,000
b. $20,000
c. $25,000
d. $30,000
e. $40,000
Q:
What problem does turnover create for firm specific training?
a. Human capital is destroyed if the worker quits the firm.
b. The worker pays more for human capital than is efficient.
c. The workers are underpaid to correct a market inefficiency.
d. Firms underinvest in human capital.
e. Turnover does not cause a problem because of contracts.
Q:
A worker's wage increases over the course of her career for which type of training?
a. formal
b. informal
c. general
d. specific
e. on-site
Q:
For training, a worker's starting wage depends on the costs of training. For training, a worker's wage does not depend on the costs of training.
a. general, specific
b. general, general
c. specific, general
d. specific, specific
e. informal, formal
Q:
Specific training is:
a. training that raises a worker's productivity at all firms.
b. training that is only useful for one firm.
c. training that always occurs on site.
d. training that is always planned and off site.
e. training that is always gained through information conversations.
Q:
General training is:
a. training that raises a worker's productivity at all firms.
b. training that is only useful for one firm.
c. training that always occurs on site.
d. training that is always planned and off site.
e. training that is always gained through information conversations.
Q:
According to the human-capital investment framework,
a. higher ability workers choose to invest more in human capital.
b. education increases productivity, which increases wages.
c. education does not affect productivity.
d. education affects wages by indicating a worker has more innate abilities.
e. workers who choose to attend college are not maximizing their expected lifetime earnings.
Q:
If capital markets are imperfect, high borrowing costs the acquisition of human capital but the rate of return.
a. encourage, increase
b. encourage, depress
c. remain the same, depress
d. discourage, increase
e. discourage, decrease
Q:
Suppose a worker's earnings are governed by w = 8· ln (1 + s) and r = 5. Given the unemployment rate with 7 of 16 workers unemployed, what is the optimal level of schooling?
a. 4 years
b. 5 years
c. 6 years
d. 7 years
e. 9 years
Q:
The future earnings of an individual at a rate.
a. increase, constant
b. increase, increasing
c. increase, decreasing
d. decrease, constant
e. decrease, decreasing
Q:
Human capital includes all of the following except
a. learning how to use a new type of software.
b. obtaining an MBA to improve the possibility an individual gets a job in management.
c. moving from a rural area to a city where there are more jobs.
d. purchasing a new computer.
e. quitting smoking in order to improve a person's health.