Question 1

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that:

Accepted Answer

A) Immigrant labor will replace domestic labor. 
B) The perfectly inelastic supply of unskilled domestic labor will prevent the hiring of any unskilled immigrant labor. 
C) The post-immigration equilibrium will be associated with lower wages being paid to the unskilled immigrants compared to the wages paid to unskilled domestic labor. 
D) Wages paid to unskilled domestic labor will be less under immigration than under no immigration. 
E) Labor demand will shift out with increased immigration. 
A) Immigrant labor will replace domestic labor. 
B) The perfectly inelastic supply of unskilled domestic labor will prevent the hiring of any unskilled immigrant labor. 
C) The post-immigration equilibrium will be associated with lower wages being paid to the unskilled immigrants compared to the wages paid to unskilled domestic labor. 
D) Wages paid to unskilled domestic labor will be less under immigration than under no immigration. 
E) Labor demand will shift out with increased immigration. D

Question 2

Which is not a factor that generates return and/or repeat migration flows?

Accepted Answer

A) A worker realizes after the move that he or she miscalculated labor market opportunities in the new location. 
B) A worker realizes after the move that he or she does not like the weather in the new location. 
C) A worker moved initially in order to move up the career ladder in his or her company. 
D) A worker lands a job after the move that pays him or her a wage much greater than originally expected. 
E) A worker realizes after the move that the monetary and psychic costs of moving are not as large as he or she originally calculated. 
A) A worker realizes after the move that he or she miscalculated labor market opportunities in the new location. 
B) A worker realizes after the move that he or she does not like the weather in the new location. 
C) A worker moved initially in order to move up the career ladder in his or her company. 
D) A worker lands a job after the move that pays him or her a wage much greater than originally expected. 
E) A worker realizes after the move that the monetary and psychic costs of moving are not as large as he or she originally calculated. D

Question 3

Roughly how many people immigrated legally to the United States in 2011?

Accepted Answer

A) 250,000 
B) 750,000 
C) 1 million 
D) 2 million 
E) 3 million 
A) 250,000 
B) 750,000 
C) 1 million 
D) 2 million 
E) 3 million C

Question 4

Which of the following regarding internal migration in the United States is not true?

Accepted Answer

A) Migration is more common among younger workers compared to older workers. 
B) Migration is more common among educated workers compared to uneducated workers. 
C) Migration equalizes wages across regions. 
D) Empirically the mystery is why there is not more internal migration, not why there is not less. 
E) Repeat and return migration are rational decisions and routinely occur. 
A) Migration is more common among younger workers compared to older workers. 
B) Migration is more common among educated workers compared to uneducated workers. 
C) Migration equalizes wages across regions. 
D) Empirically the mystery is why there is not more internal migration, not why there is not less. 
E) Repeat and return migration are rational decisions and routinely occur.

Question 5

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the immigration surplus to the domestic economy can be estimated by:

Accepted Answer

A) The number of immigrants times the new wage rate. 
B) The total number of workers under immigration times the difference in the old and new wage rates. 
C) One half of the number of immigrants times the new wage rate. 
D) One half of the number of immigrants times the difference in the old and new wage rates. 
E) National income minus government spending on immigration programs. 
A) The number of immigrants times the new wage rate. 
B) The total number of workers under immigration times the difference in the old and new wage rates. 
C) One half of the number of immigrants times the new wage rate. 
D) One half of the number of immigrants times the difference in the old and new wage rates. 
E) National income minus government spending on immigration programs.

Question 6

Which of the following is least likely to affect the net gain to migration?

Accepted Answer

A) An improvement in economic opportunities in the destination state. 
B) An improvement in economic opportunities in the source state. 
C) An increase in migration costs. 
D) Changing one's preferences for living in different places. 
E) A general increase in the national price level. 
A) An improvement in economic opportunities in the destination state. 
B) An improvement in economic opportunities in the source state. 
C) An increase in migration costs. 
D) Changing one's preferences for living in different places. 
E) A general increase in the national price level.

Question 7

When a firm pays higher wages, it is likely that doing so will

Accepted Answer

A) increase turnover. 
B) lower the firm's ability to attract high-skill workers. 
C) encourage workers to stay on the job for a long time. 
D) decrease worker utility. 
E) decrease the quality of the potential worker pool. 
A) increase turnover. 
B) lower the firm's ability to attract high-skill workers. 
C) encourage workers to stay on the job for a long time. 
D) decrease worker utility. 
E) decrease the quality of the potential worker pool.

Question 8

Which of the following statements about self-selection and immigration flows into the United States is false?

Accepted Answer

A) If the flow of immigrants is currently positively selected, increasing the costs to immigration will likely make the future flow of immigrants even more positively selected. 
B) Negative selection results in low skilled workers coming to the United States. 
C) High-skilled workers in foreign countries will not always choose to migrate to the United States. 
D) Negative selection occurs when the United States offers a greater return to skill at high skill levels than the source country. 
E) Positive selection results in highly skilled workers coming to the United States. 
A) If the flow of immigrants is currently positively selected, increasing the costs to immigration will likely make the future flow of immigrants even more positively selected. 
B) Negative selection results in low skilled workers coming to the United States. 
C) High-skilled workers in foreign countries will not always choose to migrate to the United States. 
D) Negative selection occurs when the United States offers a greater return to skill at high skill levels than the source country. 
E) Positive selection results in highly skilled workers coming to the United States.

Question 9

When immigrant labor is complementary to native labor in the production process, a more open immigration policy will likely result in all but which of the following?

Accepted Answer

A) Firms will value native labor more highly. 
B) The labor demand curve for native workers shifts out. 
C) Lower wages are paid to native workers. 
D) Overall economic efficiency increases. 
E) Overall native employment increases. 
A) Firms will value native labor more highly. 
B) The labor demand curve for native workers shifts out. 
C) Lower wages are paid to native workers. 
D) Overall economic efficiency increases. 
E) Overall native employment increases.

Question 10

Compared to older workers with several years of experience with one firm, newly hired young workers typically

Accepted Answer

A) have higher turnover. 
B) have more on-the-job training. 
C) have more experience. 
D) are likely to stay with their job longer. 
E) tend to earn more than their experienced colleagues. 
A) have higher turnover. 
B) have more on-the-job training. 
C) have more experience. 
D) are likely to stay with their job longer. 
E) tend to earn more than their experienced colleagues.

Question 11

Suppose there is currently positive selection of immigrants to the United States. What would happen to immigration to the U.S. if the return to skills were to fall in the United States?

Accepted Answer

A) The same selection of immigrants would continue to come to the United States. 
B) The selection of immigrants to the United States would switch from being positive to being negative. 
C) The selection would remain positive but with more workers immigrating to the United States. 
D) The selection would remain positive, but the average skills of immigrants would fall. 
E) The selection would remain positive, but the average skills of immigrants would increase. 
A) The same selection of immigrants would continue to come to the United States. 
B) The selection of immigrants to the United States would switch from being positive to being negative. 
C) The selection would remain positive but with more workers immigrating to the United States. 
D) The selection would remain positive, but the average skills of immigrants would fall. 
E) The selection would remain positive, but the average skills of immigrants would increase.

Question 12

Which one of the following statements regarding job turnover is false for the U.S. labor market?

Accepted Answer

A) The quit rate is almost always higher than the layoff rate. 
B) The overall separation rate is much higher for younger workers than older workers. 
C) The rate of job loss is highest for the least educated. 
D) Workers who have a lot of seniority are likely to switch to a different firm when their wage-age profile begins to flatten out. 
E) Men are much more likely to hold a long term job than are women. 
A) The quit rate is almost always higher than the layoff rate. 
B) The overall separation rate is much higher for younger workers than older workers. 
C) The rate of job loss is highest for the least educated. 
D) Workers who have a lot of seniority are likely to switch to a different firm when their wage-age profile begins to flatten out. 
E) Men are much more likely to hold a long term job than are women.

Question 13

By all accounts, the annual economic gains to immigration in the United States are

Accepted Answer

A) non-existent at essentially $0. 
B) negative as immigrant workers take jobs away from American workers. 
C) extremely large at $1.5 trillion, or 10 percent of GDP. 
D) substantial at $480 million, or 3.2 percent of GDP. 
E) relatively small at about $36 billion, or 0.24 percent of GDP. 
A) non-existent at essentially $0. 
B) negative as immigrant workers take jobs away from American workers. 
C) extremely large at $1.5 trillion, or 10 percent of GDP. 
D) substantial at $480 million, or 3.2 percent of GDP. 
E) relatively small at about $36 billion, or 0.24 percent of GDP.

Question 14

Specific job training

Accepted Answer

A) allows for more inter-industry job mobility. 
B) raises entry level wages for the untrained. 
C) leads to lower turnover. 
D) discourages workers from earning seniority. 
E) leads to a greater willingness by firms to lay off workers. 
A) allows for more inter-industry job mobility. 
B) raises entry level wages for the untrained. 
C) leads to lower turnover. 
D) discourages workers from earning seniority. 
E) leads to a greater willingness by firms to lay off workers.

Question 15

Which of the following is a sign of a well-functioning labor market?

Accepted Answer

A) A high degree of labor mobility (job losses and job gains). 
B) A constant unemployment rate. 
C) Equal pay for all workers. 
D) Equal pay in all regions. 
E) All workers have a college education. 
A) A high degree of labor mobility (job losses and job gains). 
B) A constant unemployment rate. 
C) Equal pay for all workers. 
D) Equal pay in all regions. 
E) All workers have a college education.

Question 16

Which of the following statements about migration is not true?

Accepted Answer

A) Migration is greater among younger workers compared to older workers, because older workers have a shorter period in which to benefit from the returns to migration. 
B) Migration is greater among highly educated workers compared to less educated workers, because the returns to education for highly-educated workers vary much more from location to location than for workers with low levels of education. 
C) Migration is greater among married couples compared to single-person households, because migration costs are less for married couples. 
D) A tied-stayer is someone who would move if he or she were single. 
E) Migration is greater among people who like the adventure of moving compared to people who do not like the adventure of moving, because the psychic costs of moving are less for those who enjoy moving. 
A) Migration is greater among younger workers compared to older workers, because older workers have a shorter period in which to benefit from the returns to migration. 
B) Migration is greater among highly educated workers compared to less educated workers, because the returns to education for highly-educated workers vary much more from location to location than for workers with low levels of education. 
C) Migration is greater among married couples compared to single-person households, because migration costs are less for married couples. 
D) A tied-stayer is someone who would move if he or she were single. 
E) Migration is greater among people who like the adventure of moving compared to people who do not like the adventure of moving, because the psychic costs of moving are less for those who enjoy moving.

Question 17

The Roy model concerns

Accepted Answer

A) the skill-selection associated with immigration flows. 
B) specific on-the-job training. 
C) general training. 
D) the age-earnings profile. 
E) the cost-benefit analysis of layoffs or quits. 
A) the skill-selection associated with immigration flows. 
B) specific on-the-job training. 
C) general training. 
D) the age-earnings profile. 
E) the cost-benefit analysis of layoffs or quits.

Question 18

In a standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Accepted Answer

A) The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person. 
B) The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person. 
C) The highest skilled workers migrate from the source country to the destination country. 
D) The lowest skilled workers migrate from the source country to the destination country. 
E) Migration leads to an increase in average skills in both locations whenever there is positive selection. 
A) The workers who migrate from the source country are below-average in skill relative to the average source country person but are above-average in skill relative to the average destination country person. 
B) The workers who migrate from the source country are above-average in skill relative to the average source country person but are below-average in skill relative to the average destination country person. 
C) The highest skilled workers migrate from the source country to the destination country. 
D) The lowest skilled workers migrate from the source country to the destination country. 
E) Migration leads to an increase in average skills in both locations whenever there is positive selection.

Question 19

Suppose an economy exhibits general conditions of downward sloping labor demand, upward sloping supplies of domestic and immigrant labor, and a competitive labor market. Which of the following is not a likely outcome of immigration?

Accepted Answer

A) Domestic workers will experience some job losses. 
B) Domestic workers who keep their job will experience an increase in earnings. 
C) The market clearing wage will fall. 
D) Economic surplus will increase in the destination country, even net of immigrant earnings. 
E) Some economic surplus will transfer from domestic workers to domestic firms. 
A) Domestic workers will experience some job losses. 
B) Domestic workers who keep their job will experience an increase in earnings. 
C) The market clearing wage will fall. 
D) Economic surplus will increase in the destination country, even net of immigrant earnings. 
E) Some economic surplus will transfer from domestic workers to domestic firms.

Question 20

Suppose the age-wage profile of immigrants has been increasing over time. That is, the age-wage profile of immigrants in the 1990s is higher than the age-wage profile of immigrants in the 1980s, which is in turn higher than the wage-age profile of immigrants in the 1970s. In this case, if one uses cohort analysis to estimate the age-wage profile of immigrants, which of the following is possible to find:

Accepted Answer

A) A negative return to moving costs. 
B) A horizontal age-wage profile. 
C) A positively skewed wage distribution. 
D) A negatively skewed wage distribution. 
E) Negatively selected immigration. 
A) A negative return to moving costs. 
B) A horizontal age-wage profile. 
C) A positively skewed wage distribution. 
D) A negatively skewed wage distribution. 
E) Negatively selected immigration.

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that:

Which is not a factor that generates return and/or repeat migration flows?

Roughly how many people immigrated legally to the United States in 2011?

Which of the following regarding internal migration in the United States is not true?

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the immigration surplus to the domestic economy can be estimated by:

Which of the following is least likely to affect the net gain to migration?

When a firm pays higher wages, it is likely that doing so will

Which of the following statements about self-selection and immigration flows into the United States is false?

When immigrant labor is complementary to native labor in the production process, a more open immigration policy will likely result in all but which of the following?

Compared to older workers with several years of experience with one firm, newly hired young workers typically

Suppose there is currently positive selection of immigrants to the United States. What would happen to immigration to the U.S. if the return to skills were to fall in the United States?

Which one of the following statements regarding job turnover is false for the U.S. labor market?

By all accounts, the annual economic gains to immigration in the United States are

Specific job training

Which of the following is a sign of a well-functioning labor market?

Which of the following statements about migration is not true?

The Roy model concerns

In a standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Suppose an economy exhibits general conditions of downward sloping labor demand, upward sloping supplies of domestic and immigrant labor, and a competitive labor market. Which of the following is not a likely outcome of immigration?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 8: Labor Mobility

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that:

Which is not a factor that generates return and/or repeat migration flows?

Roughly how many people immigrated legally to the United States in 2011?

Which of the following regarding internal migration in the United States is not true?

If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the immigration surplus to the domestic economy can be estimated by:

Which of the following is least likely to affect the net gain to migration?

When a firm pays higher wages, it is likely that doing so will

Which of the following statements about self-selection and immigration flows into the United States is false?

When immigrant labor is complementary to native labor in the production process, a more open immigration policy will likely result in all but which of the following?

Compared to older workers with several years of experience with one firm, newly hired young workers typically

Suppose there is currently positive selection of immigrants to the United States. What would happen to immigration to the U.S. if the return to skills were to fall in the United States?

Which one of the following statements regarding job turnover is false for the U.S. labor market?

By all accounts, the annual economic gains to immigration in the United States are

Specific job training

Which of the following is a sign of a well-functioning labor market?

Which of the following statements about migration is not true?

The Roy model concerns

In a standard Roy model, migration can lead to an increase in average skills in both locations. What is necessary for this to happen?

Suppose an economy exhibits general conditions of downward sloping labor demand, upward sloping supplies of domestic and immigrant labor, and a competitive labor market. Which of the following is not a likely outcome of immigration?

Introduction to Labor Economics

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters