Question 1

Women generally receive ________ on-the-job training than men, causing their age-earnings profiles to be ________ than those of men.

Accepted Answer

A)  less; flatter 
B)  less; steeper 
C)  more; flatter 
D)  more; steeper 
A)  less; flatter 
B)  less; steeper 
C)  more; flatter 
D)  more; steeper

Question 2

The wages paid by two careers, X and Y, have the same present value. Which of the following increase the likelihood that career X will pay more in wages over time (summed over the lifetime without discounting)?

Accepted Answer

A)  Career X has an earlier retirement age. 
B)  Career X pays a much steadier wage. 
C)  Career X has fewer hours of work per year. 
D)  Career X pays the majority of its wages at a later age. 
A)  Career X has an earlier retirement age. 
B)  Career X pays a much steadier wage. 
C)  Career X has fewer hours of work per year. 
D)  Career X pays the majority of its wages at a later age.

Question 3

Firms use signals to estimate productivity so that they can

Accepted Answer

A)  pay a low wage to all workers. 
B)  pay the same wage to all workers. 
C)  save on the costs of more accurate estimates. 
D)  minimize labor costs. 
A)  pay a low wage to all workers. 
B)  pay the same wage to all workers. 
C)  save on the costs of more accurate estimates. 
D)  minimize labor costs.

Question 4

Which of the following is NOT an expense of acquiring human capital?

Accepted Answer

A)  purchase of textbooks 
B)  anxiety caused by final exams 
C)  any wages foregone to attend school 
D)  cost of food and housing while attending school 
A)  purchase of textbooks 
B)  anxiety caused by final exams 
C)  any wages foregone to attend school 
D)  cost of food and housing while attending school

Question 5

Students who attend college because they enjoy the lifestyle and freedom are treating college

Accepted Answer

A)  as an investment good. 
B)  as an inferior good. 
C)  as a consumption good. 
D)  as a normal good. 
A)  as an investment good. 
B)  as an inferior good. 
C)  as a consumption good. 
D)  as a normal good.

Question 6

If both the demand for and the supply of college graduates shift to the left, then the equilibrium wage would ________ and the number of college graduates would ________.

Accepted Answer

A)  increase, change ambiguously 
B)  change ambiguously, increase 
C)  decrease, change ambiguously 
D)  change ambiguously, decrease 
A)  increase, change ambiguously 
B)  change ambiguously, increase 
C)  decrease, change ambiguously 
D)  change ambiguously, decrease

Question 7

Before biases are considered, the monetary rate of return to investments in education is

Accepted Answer

A)  lower than that of most other investments. 
B)  higher than that of most other investments. 
C)  about the same as that of most other investments. 
D)  higher for women, but lower for men. 
A)  lower than that of most other investments. 
B)  higher than that of most other investments. 
C)  about the same as that of most other investments. 
D)  higher for women, but lower for men.

Question 8

Studies of federally-sponsored training programs for "disadvantaged" workers show that

Accepted Answer

A)  the rates of return have been very high for all groups. 
B)  training has significantly decreased women's wages. 
C)  rates of return have been negative for men. 
D)  training has significantly increased men's wages. 
A)  the rates of return have been very high for all groups. 
B)  training has significantly decreased women's wages. 
C)  rates of return have been negative for men. 
D)  training has significantly increased men's wages.

Question 9

The market for engineers is initially in equilibrium. The demand curve for engineers shifts up. Assume the naive cobweb model holds such that in the first period, the labor supply is fixed, in the next period, wages are fixed, and so on. In period three, how will wages compare to its new long run level?

Accepted Answer

A)  Wages will be below its long run level. 
B)  Wages will equal its long run level. 
C)  Wages will be above its long run level. 
D)  uncertain (need more information) 
A)  Wages will be below its long run level. 
B)  Wages will equal its long run level. 
C)  Wages will be above its long run level. 
D)  uncertain (need more information)

Question 10

Which of the following best explains why the most rapid increase in a person's wages usually occur at younger ages, giving a concave shape to the age/earnings profile?

Accepted Answer

A)  Oon-the-job training is free. 
B)  On-the-job training usually declines with age. 
C)  People who have more human capital are more likely to acquire more on-the-job training. 
D)  People with children cut back their hours of work. 
A)  Oon-the-job training is free. 
B)  On-the-job training usually declines with age. 
C)  People who have more human capital are more likely to acquire more on-the-job training. 
D)  People with children cut back their hours of work.

Question 11

Increased grants and loans for college expenses would ________ the number of college graduates, while ________ wages paid to college graduates.

Accepted Answer

A)  increase; increasing 
B)  decrease; decreasing 
C)  increase; decreasing 
D)  decrease; increasing 
A)  increase; increasing 
B)  decrease; decreasing 
C)  increase; decreasing 
D)  decrease; increasing

Question 12

If average lifetime earnings of both high school and college graduates double, then the number of people attending college will consequently

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  either increase or decrease. 
A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  either increase or decrease.

Question 13

For educational investment to be explained using hedonic theory, the costs of education

Accepted Answer

A)  must be the same for present- and future-oriented people. 
B)  must decrease with age. 
C)  must be identical for all workers. 
D)  must vary between workers. 
A)  must be the same for present- and future-oriented people. 
B)  must decrease with age. 
C)  must be identical for all workers. 
D)  must vary between workers.

Question 14

The psychic costs of college are usually lowest for

Accepted Answer

A)  students with relatively high ability. 
B)  students from poor backgrounds. 
C)  students with average or low ability. 
D)  students who are at the margin in terms of attending college or not. 
A)  students with relatively high ability. 
B)  students from poor backgrounds. 
C)  students with average or low ability. 
D)  students who are at the margin in terms of attending college or not.

Women generally receive on-the-job training than men, causing their age-earnings profiles to be than those of men.

The wages paid by two careers, X and Y, have the same present value. Which of the following increase the likelihood that career X will pay more in wages over time (summed over the lifetime without discounting)?

Firms use signals to estimate productivity so that they can

Which of the following is NOT an expense of acquiring human capital?

Students who attend college because they enjoy the lifestyle and freedom are treating college

If both the demand for and the supply of college graduates shift to the left, then the equilibrium wage would and the number of college graduates would .

Before biases are considered, the monetary rate of return to investments in education is

Studies of federally-sponsored training programs for "disadvantaged" workers show that

Which of the following best explains why the most rapid increase in a person's wages usually occur at younger ages, giving a concave shape to the age/earnings profile?

Increased grants and loans for college expenses would the number of college graduates, while wages paid to college graduates.

If average lifetime earnings of both high school and college graduates double, then the number of people attending college will consequently

For educational investment to be explained using hedonic theory, the costs of education

The psychic costs of college are usually lowest for

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

Exam 9: Investments in Human Capital: Education and Training

Women generally receive ________ on-the-job training than men, causing their age-earnings profiles to be ________ than those of men.

The wages paid by two careers, X and Y, have the same present value. Which of the following increase the likelihood that career X will pay more in wages over time (summed over the lifetime without discounting)?

Firms use signals to estimate productivity so that they can

Which of the following is NOT an expense of acquiring human capital?

Students who attend college because they enjoy the lifestyle and freedom are treating college

If both the demand for and the supply of college graduates shift to the left, then the equilibrium wage would ________ and the number of college graduates would ________.

Before biases are considered, the monetary rate of return to investments in education is

Studies of federally-sponsored training programs for "disadvantaged" workers show that

Which of the following best explains why the most rapid increase in a person's wages usually occur at younger ages, giving a concave shape to the age/earnings profile?

Increased grants and loans for college expenses would ________ the number of college graduates, while ________ wages paid to college graduates.

If average lifetime earnings of both high school and college graduates double, then the number of people attending college will consequently

For educational investment to be explained using hedonic theory, the costs of education

The psychic costs of college are usually lowest for

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: the Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Worker Mobility: Migration, Immigration, and Turnover

Pay and Productivity: Wage Determination Within the Firm

Gender, Race, and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor Market Effects of International Trade and Production Sharing

Filters

Women generally receive on-the-job training than men, causing their age-earnings profiles to be than those of men.

If both the demand for and the supply of college graduates shift to the left, then the equilibrium wage would and the number of college graduates would .

Increased grants and loans for college expenses would the number of college graduates, while wages paid to college graduates.