Question 1

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. A

Question 2

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. B

Question 3

The human capital externality refers to

Accepted Answer

A) an additional tax placed on institutions of higher learning. 
B) the government's subsidization of institutions of higher learning. 
C) the quality of the environment in which a child is raised. 
D) the cohort affect from selection bias. 
E) the environmental costs associated with rapid population growth. 
A) an additional tax placed on institutions of higher learning. 
B) the government's subsidization of institutions of higher learning. 
C) the quality of the environment in which a child is raised. 
D) the cohort affect from selection bias. 
E) the environmental costs associated with rapid population growth. C

Question 4

State University wishes to hire another labor economist.It targets two economists, Amy and Beth, who are both currently working at a university in another state and who are both earning $68,000 per year.Amy is a 32 year-old, single assistant professor who lived in India and Germany as a child and who will come up for tenure in 2 years.Beth is a 50 year-old, married full professor with tenure who has worked for a single university for 22 years.The offer to either economist is for $75,000 per year and the ability to apply for tenure in 3 years.Given the information above, Amy is more likely to accept a job offer from State University than is Beth for several reasons.Which is the least likely reason why?

Accepted Answer

A) Because Amy is younger than Beth. 
B) Because Amy is not yet tenured. 
C) Because Amy faces lower moving costs. 
D) Because Amy is single while Beth is married. 
E) Because both women stand to earn $7,000 more per year by switching jobs. 
A) Because Amy is younger than Beth. 
B) Because Amy is not yet tenured. 
C) Because Amy faces lower moving costs. 
D) Because Amy is single while Beth is married. 
E) Because both women stand to earn $7,000 more per year by switching jobs.

Question 5

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 6

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 7

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 8

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 9

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 10

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.

Question 11

The standard model of geographic migration suggests:

Accepted Answer

A) Migration occurs when there is a good chance that a worker will gain back his costs of moving. 
B) Increases in migration costs reduces the gains to migration. 
C) Improvements in economic opportunities in the current region of residence discourage migration. 
D) Improvements in economic opportunities in a possible region of residence encourage migration. 
E) All of the above statements are true. 
A) Migration occurs when there is a good chance that a worker will gain back his costs of moving. 
B) Increases in migration costs reduces the gains to migration. 
C) Improvements in economic opportunities in the current region of residence discourage migration. 
D) Improvements in economic opportunities in a possible region of residence encourage migration. 
E) All of the above statements are true.

Question 12

Negative selection in a migration model means that

Accepted Answer

A) immigrants from the source country are highly skilled relative to labor in the destination country. 
B) immigrants from the source country are not highly skilled relative to labor in the destination country. 
C) all workers in the source country would earn a higher return on their skills if they would remain in the source country. 
D) all workers in the source country would earn a higher return on their skills if they would not immigrate to the destination country. 
E) anyone in the source country who can afford the cost of migrating to the destination country will do so. 
A) immigrants from the source country are highly skilled relative to labor in the destination country. 
B) immigrants from the source country are not highly skilled relative to labor in the destination country. 
C) all workers in the source country would earn a higher return on their skills if they would remain in the source country. 
D) all workers in the source country would earn a higher return on their skills if they would not immigrate to the destination country. 
E) anyone in the source country who can afford the cost of migrating to the destination country will do so.

Question 13

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) Government spending. 
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) Government spending.

Question 14

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 15

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Accepted Answer

A) Because workers in bad job matches tend to stay on the job longer. 
B) Because workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity. 
C) Because the positive effects of general training on education erode over time. 
D) Young workers are more productive than older workers. 
E) U.S.law requires older workers to be paid more than younger workers. 
A) Because workers in bad job matches tend to stay on the job longer. 
B) Because workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity. 
C) Because the positive effects of general training on education erode over time. 
D) Young workers are more productive than older workers. 
E) U.S.law requires older workers to be paid more than younger workers.

Question 16

Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?

Accepted Answer

A) National income increases by more than the total earnings of immigrants. 
B) National income increases by less than the total earnings of immigrants. 
C) National income decreases by more than the total earnings of immigrants. 
D) National income decreases by less than the total earnings of immigrants. 
E) Immigrants have no effect on national income because they are not citizens. 
A) National income increases by more than the total earnings of immigrants. 
B) National income increases by less than the total earnings of immigrants. 
C) National income decreases by more than the total earnings of immigrants. 
D) National income decreases by less than the total earnings of immigrants. 
E) Immigrants have no effect on national income because they are not citizens.

Question 17

Which of the following is not likely to prevent some people from migrating?

Accepted Answer

A) Some people face high financial costs associated with migrating. 
B) Some people don't want to leave their family and friends. 
C) Having a spouse who has a very well-paying job in the current location. 
D) Having a lucrative job offer in a different city. 
E) Having a teenage child who does not want to change high schools. 
A) Some people face high financial costs associated with migrating. 
B) Some people don't want to leave their family and friends. 
C) Having a spouse who has a very well-paying job in the current location. 
D) Having a lucrative job offer in a different city. 
E) Having a teenage child who does not want to change high schools.

Question 18

A couple is considering moving to Tampa from Chicago.The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600.Crystal earns $500 in Chicago and $550 in Tampa.Amelia earns $200 in Chicago and $1000 in Tampa.Will they move as a couple?

Accepted Answer

A) Yes, because they would earn $1,550 in Tampa but only $700 in Chicago. 
B) Yes, because they receive a net gain of $150 by moving to Tampa. 
C) Yes, because the joint cost of moving ($900) exceed what they could earn in Chicago ($700). 
D) No, because they would lose $50 by moving to Tampa when all benefits and costs are taken into account. 
E) No, because neither person would choose to move to Tampa on their own. 
A) Yes, because they would earn $1,550 in Tampa but only $700 in Chicago. 
B) Yes, because they receive a net gain of $150 by moving to Tampa. 
C) Yes, because the joint cost of moving ($900) exceed what they could earn in Chicago ($700). 
D) No, because they would lose $50 by moving to Tampa when all benefits and costs are taken into account. 
E) No, because neither person would choose to move to Tampa on their own.

Question 19

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.

Question 20

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.

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

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?

The human capital externality refers to

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

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 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 of the following statements about migration is not true?

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

The standard model of geographic migration suggests:

Negative selection in a migration model means that

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

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

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?

Which of the following is not likely to prevent some people from migrating?

A couple is considering moving to Tampa from Chicago.The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600.Crystal earns $500 in Chicago and $550 in Tampa.Amelia earns $200 in Chicago and $1000 in Tampa.Will they move as a couple?

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

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

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

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

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?

The human capital externality refers to

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

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 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 of the following statements about migration is not true?

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

The standard model of geographic migration suggests:

Negative selection in a migration model means that

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

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

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

Assuming labor demand is downward sloping and that the labor market is competitive, what happens to national income as a result in immigration?

Which of the following is not likely to prevent some people from migrating?

A couple is considering moving to Tampa from Chicago.The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600.Crystal earns $500 in Chicago and $550 in Tampa.Amelia earns $200 in Chicago and $1000 in Tampa.Will they move as a couple?

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

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

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