Question 1

Expansions in globalization and the reduction of trade barriers world-wide during the 1980s and 1990s most likely had what effect on the demand for U.S. labor?

Accepted Answer

A) The demand for unskilled workers increased, while the demand for skilled workers decreased. 
B) The demand for unskilled workers decreased, while the demand for skilled workers increased. 
C) The demand for unskilled and skilled workers increased. 
D) The demand for unskilled and skilled workers decreased. 
E) The demand for unskilled workers increased, while the demand for skilled workers didn't change. 
A) The demand for unskilled workers increased, while the demand for skilled workers decreased. 
B) The demand for unskilled workers decreased, while the demand for skilled workers increased. 
C) The demand for unskilled and skilled workers increased. 
D) The demand for unskilled and skilled workers decreased. 
E) The demand for unskilled workers increased, while the demand for skilled workers didn't change.

Question 2

Large disparities in wages could possibly result from all but which one of the following?

Accepted Answer

A) Parental investment in a child's human capital. 
B) Increases in the amount of middle class jobs. 
C) Skill-biased technological change. 
D) Globalization. 
E) An increase in the demand for highly skilled labor. 
A) Parental investment in a child's human capital. 
B) Increases in the amount of middle class jobs. 
C) Skill-biased technological change. 
D) Globalization. 
E) An increase in the demand for highly skilled labor.

Question 3

Which of the following statements regarding the increase in supply of high-skill labor in the United States since 1960 as measured by education level is not true?

Accepted Answer

A) The percent of workers without a high school degree has fallen dramatically since 1960. 
B) The percent of workers with a high school degree has fallen dramatically since 1960. 
C) The percent of workers with a college degree has increased dramatically since 1960. 
D) The percent of workers with an advanced degree has increased dramatically since 1960. 
E) The supply of highly-skilled women to the workforce has increased dramatically since 1960. 
A) The percent of workers without a high school degree has fallen dramatically since 1960. 
B) The percent of workers with a high school degree has fallen dramatically since 1960. 
C) The percent of workers with a college degree has increased dramatically since 1960. 
D) The percent of workers with an advanced degree has increased dramatically since 1960. 
E) The supply of highly-skilled women to the workforce has increased dramatically since 1960.

Question 4

Suppose the distribution of innate ability is distributed symmetrically throughout a population but that the wage distribution is positively skewed. What most likely explains this?

Accepted Answer

A) A regressive tax code. 
B) Decreased immigration. 
C) Differences in human capital accumulation. 
D) A decreasing Gini coefficient. 
E) A non-competitive labor market. 
A) A regressive tax code. 
B) Decreased immigration. 
C) Differences in human capital accumulation. 
D) A decreasing Gini coefficient. 
E) A non-competitive labor market.

Question 5

Which one of the following statements about the Gini coefficient is not true?

Accepted Answer

A) The Gini coefficient reflects the data shown in the Lorenz curve. 
B) The Gini coefficient equals zero when there is perfect equality. 
C) The Gini coefficient increases as income inequality increases. 
D) The Gini coefficient must fall when the amount of income in an economy increases. 
E) The Gini coefficient equals one when there is perfect inequality. 
A) The Gini coefficient reflects the data shown in the Lorenz curve. 
B) The Gini coefficient equals zero when there is perfect equality. 
C) The Gini coefficient increases as income inequality increases. 
D) The Gini coefficient must fall when the amount of income in an economy increases. 
E) The Gini coefficient equals one when there is perfect inequality.

Question 6

In general terms, which of the following statements regarding changes in income inequality in the United States is correct?

Accepted Answer

A) Inequality has increased substantially over the last 40 years as witnessed by the Gini coefficient increasing from about 0.1 in 1970 to over 0.7 in 2010. 
B) Inequality has increased slightly over the last 40 years as witnessed by the Gini coefficient increasing from below 0.4 in 1970 to over 0.45 in 2010. 
C) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.5 in 1970 to almost 0.05 in 2010. 
D) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.8 in 1970 to just over 0.25 in 2010. 
E) Inequality has stayed about the same over the last 40 years as witnessed by a Gini coefficient that has hovered around 0.6. 
A) Inequality has increased substantially over the last 40 years as witnessed by the Gini coefficient increasing from about 0.1 in 1970 to over 0.7 in 2010. 
B) Inequality has increased slightly over the last 40 years as witnessed by the Gini coefficient increasing from below 0.4 in 1970 to over 0.45 in 2010. 
C) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.5 in 1970 to almost 0.05 in 2010. 
D) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.8 in 1970 to just over 0.25 in 2010. 
E) Inequality has stayed about the same over the last 40 years as witnessed by a Gini coefficient that has hovered around 0.6.

Question 7

Which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40 years in the United States?

Accepted Answer

A) There was an increase in the supply of low-skill workers, particularly through immigration. 
B) Federal legislation allowed employers to legally engage in more racial discrimination. 
C) Competition from international economies has increased demand for highly productive workers. 
D) Recent technological changes have been complementary to skilled labor while substituting for unskilled labor. 
E) Institutional changes in the United States such as a steady decline in union coverage and a falling real minimum wage have led to changes in the wage distribution. 
A) There was an increase in the supply of low-skill workers, particularly through immigration. 
B) Federal legislation allowed employers to legally engage in more racial discrimination. 
C) Competition from international economies has increased demand for highly productive workers. 
D) Recent technological changes have been complementary to skilled labor while substituting for unskilled labor. 
E) Institutional changes in the United States such as a steady decline in union coverage and a falling real minimum wage have led to changes in the wage distribution.

Question 8

Social mobility refers to

Accepted Answer

A) the ability for a worker to move up in a firm's hierarchy. 
B) the ability for a worker to increase his or her human capital. 
C) the link between the skills and income of parents and children. 
D) the relationship between human capital and wages. 
E) the degree to which society dictates the wage distribution. 
A) the ability for a worker to move up in a firm's hierarchy. 
B) the ability for a worker to increase his or her human capital. 
C) the link between the skills and income of parents and children. 
D) the relationship between human capital and wages. 
E) the degree to which society dictates the wage distribution.

Question 9

An approximate Lorenz curve shows

Accepted Answer

A) the maximum and minimum wage gaps. 
B) the relationship between income and tax revenue. 
C) the share of income received by age group. 
D) the relationship between income and earnings potential. 
E) the cumulative share of income earned by quintiles of households. 
A) the maximum and minimum wage gaps. 
B) the relationship between income and tax revenue. 
C) the share of income received by age group. 
D) the relationship between income and earnings potential. 
E) the cumulative share of income earned by quintiles of households.

Question 10

What does the Gini coefficient measure?

Accepted Answer

A) The rate of growth of income inequality over time. 
B) The degree of inequality in an income distribution. 
C) The correlation coefficient between income and education. 
D) The covariance of income and education. 
E) The degree of tax incidence paid by poor workers. 
A) The rate of growth of income inequality over time. 
B) The degree of inequality in an income distribution. 
C) The correlation coefficient between income and education. 
D) The covariance of income and education. 
E) The degree of tax incidence paid by poor workers.

Expansions in globalization and the reduction of trade barriers world-wide during the 1980s and 1990s most likely had what effect on the demand for U.S. labor?

Large disparities in wages could possibly result from all but which one of the following?

Which of the following statements regarding the increase in supply of high-skill labor in the United States since 1960 as measured by education level is not true?

Suppose the distribution of innate ability is distributed symmetrically throughout a population but that the wage distribution is positively skewed. What most likely explains this?

Which one of the following statements about the Gini coefficient is not true?

In general terms, which of the following statements regarding changes in income inequality in the United States is correct?

Which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40 years in the United States?

Social mobility refers to

An approximate Lorenz curve shows

What does the Gini coefficient measure?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 7: The Wage Structure

Expansions in globalization and the reduction of trade barriers world-wide during the 1980s and 1990s most likely had what effect on the demand for U.S. labor?

Large disparities in wages could possibly result from all but which one of the following?

Which of the following statements regarding the increase in supply of high-skill labor in the United States since 1960 as measured by education level is not true?

Suppose the distribution of innate ability is distributed symmetrically throughout a population but that the wage distribution is positively skewed. What most likely explains this?

Which one of the following statements about the Gini coefficient is not true?

In general terms, which of the following statements regarding changes in income inequality in the United States is correct?

Which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40 years in the United States?

Social mobility refers to

An approximate Lorenz curve shows

What does the Gini coefficient measure?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters