Question 1

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a reason for the wage differential between females and males?

Accepted Answer

A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours. 
A) The choice of major in college by females tends to be different than the choice by males. 
B) The existence of employer prejudice. 
C) The number of males is usually greater than the number of females in the labor force. 
D) Females bear the primary responsibility of childbearing. 
E) Women accept lower wages for flexible and shorter working hours.

Question 3

An example of human capital is the purchase of a computer to help accountants.

Accepted Answer

A) True 
 B)False

Question 4

Why has the inequality of income become greater?

Accepted Answer

A) The demand for skilled workers has declined. 
B) The demand for skilled workers has remained constant and the demand for unskilled workers has declined. 
C) The government policies went against the unskilled workers. 
D) The demand for skilled workers has increased and the demand for unskilled workers has not kept pace. 
E) The demand for unskilled workers increased as they could be hired for lower wages. 
A) The demand for skilled workers has declined. 
B) The demand for skilled workers has remained constant and the demand for unskilled workers has declined. 
C) The government policies went against the unskilled workers. 
D) The demand for skilled workers has increased and the demand for unskilled workers has not kept pace. 
E) The demand for unskilled workers increased as they could be hired for lower wages.

Question 5

The ratio of the median income of college-to high school-educated workers is called the _____.

Accepted Answer

A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap 
A) college income premium 
B) college income differential 
C) college income benefit 
D) college income compensation 
E) education income gap

Question 6

An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

Accepted Answer

A) True 
 B)False

Question 7

If the minimum wage is set above the equilibrium wage by the government,there is an excess supply of labor in the market.

Accepted Answer

A) True 
 B)False

Question 8

Offshoring does not affect the percentage of U.S.workers employed in manufacturing.

Accepted Answer

A) True 
 B)False

Question 9

An individual is induced to change his/her occupation if:

Accepted Answer

A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income increases in the current occupation is as good as another occupation. 
D) he/she has devoted a lot of money,time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high. 
A) the sunk cost of the current occupation is high. 
B) the expected net gains from the alternative occupation is negative. 
C) the outlook for future income increases in the current occupation is as good as another occupation. 
D) he/she has devoted a lot of money,time and effort in the current occupation. 
E) the marginal cost of remaining in the current occupation is very high.

Question 10

Which of the following professionals is likely to receive higher compensatory wages?

Accepted Answer

A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors 
A) Financial accountants 
B) Software engineers 
C) Sales workers 
D) Share traders 
E) Tailors

Question 11

All of the following are reasons for immigration to a foreign country,except that:

Accepted Answer

A) the domestic country may be politically repressive. 
B) there is an abundance of employment opportunities in the domestic country. 
C) the domestic country is economically stagnant. 
D) there is no scope for upward mobility in the domestic country. 
E) there are religious prosecutions. 
A) the domestic country may be politically repressive. 
B) there is an abundance of employment opportunities in the domestic country. 
C) the domestic country is economically stagnant. 
D) there is no scope for upward mobility in the domestic country. 
E) there are religious prosecutions.

Question 12

Disparate treatment refers to:

Accepted Answer

A) the treatment of individuals on the basis of their race,sex,color,religion,or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions. 
A) the treatment of individuals on the basis of their race,sex,color,religion,or national origin. 
B) the treatment of individual workers on the basis of their opportunity costs. 
C) the treatment of individual workers on the basis of their marginal productivities. 
D) discriminatory treatment of the individuals due to lack of correct information. 
E) the discriminatory treatment of firms by the trade unions.

Question 13

Which of the following can result in occupational crowding?

Accepted Answer

A) Illegal immigration 
B) Outsourcing of services 
C) Consumer prejudices,superstitions,and religious taboos 
D) Governmental policies and customs 
E) Statistical discrimination and imperfect information 
A) Illegal immigration 
B) Outsourcing of services 
C) Consumer prejudices,superstitions,and religious taboos 
D) Governmental policies and customs 
E) Statistical discrimination and imperfect information

Question 14

Which of the following reasons will most likely explain why discrimination that is notrelated to personal prejudice can occur?

Accepted Answer

A) A desire to avoid associating with certain groups of people 
B) A lack of communication skills of workers seeking jobs 
C) A lack of information 
D) A lack of proper technical expertise 
E) Too many people applying for the same job 
A) A desire to avoid associating with certain groups of people 
B) A lack of communication skills of workers seeking jobs 
C) A lack of information 
D) A lack of proper technical expertise 
E) Too many people applying for the same job

Question 15

The policy of comparable worth has been more successful in the public sector than in the private sector.

Accepted Answer

A) True 
 B)False

Question 16

If the tax rate increases with increase in income,the income tax structure is said to be _____.

Accepted Answer

A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed 
A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed

Question 17

A college student's choice of a major and an occupation reflects:

Accepted Answer

A) what each college student expects wage inflation to be in the future. 
B) a lack of information on the part of the students. 
C) a lack of proper education and vocational training. 
D) the return on investment in human capital. 
E) the opportunity costs each college student faces. 
A) what each college student expects wage inflation to be in the future. 
B) a lack of information on the part of the students. 
C) a lack of proper education and vocational training. 
D) the return on investment in human capital. 
E) the opportunity costs each college student faces.

Question 18

Illegal immigrants to the U.S.usually charge higher wages than their American counterparts.

Accepted Answer

A) True 
 B)False

Question 19

Getting the work done by some other firm at lower costs,when the firm is situated in some other country is called outsourcing.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a major impact of offshoring?

Accepted Answer

A) Elimination of domestic jobs 
B) Elimination of jobs in foreign countries 
C) Creation of jobs in the domestic country 
D) An increase in the cost of production of domestic firms 
E) A reduction in the cost of production of foreign firms 
A) Elimination of domestic jobs 
B) Elimination of jobs in foreign countries 
C) Creation of jobs in the domestic country 
D) An increase in the cost of production of domestic firms 
E) A reduction in the cost of production of foreign firms

Exam 15: The Labor Market

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Which of the following is not a reason for the wage differential between females and males?

An example of human capital is the purchase of a computer to help accountants.

Why has the inequality of income become greater?

The ratio of the median income of college-to high school-educated workers is called the _____.

An increase in the wage rate lowers the opportunity cost of leisure and induces people to enjoy more leisure.

If the minimum wage is set above the equilibrium wage by the government,there is an excess supply of labor in the market.

Offshoring does not affect the percentage of U.S.workers employed in manufacturing.

An individual is induced to change his/her occupation if:

Which of the following professionals is likely to receive higher compensatory wages?

All of the following are reasons for immigration to a foreign country,except that:

Disparate treatment refers to:

Which of the following can result in occupational crowding?

Which of the following reasons will most likely explain why discrimination that is notrelated to personal prejudice can occur?

The policy of comparable worth has been more successful in the public sector than in the private sector.

If the tax rate increases with increase in income,the income tax structure is said to be _____.

A college student's choice of a major and an occupation reflects:

Illegal immigrants to the U.S.usually charge higher wages than their American counterparts.

Getting the work done by some other firm at lower costs,when the firm is situated in some other country is called outsourcing.

Which of the following is a major impact of offshoring?

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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