Question 1

Which of the following factors does not help explain why the earnings distribution is skewed to the right?

Accepted Answer

A) Family background 
B) Discrimination 
C) The impact of ability on human capital decisions 
D) Churning within the distribution 
A) Family background 
B) Discrimination 
C) The impact of ability on human capital decisions 
D) Churning within the distribution

Question 2

If the various elements of innate ability are positively correlated and interact with one another multiplicatively rather than additively to determine earnings,then:

Accepted Answer

A) the distribution of earnings will tend to be more skewed to the right 
B) the distribution of earnings will tend to be more skewed to the left 
C) the distribution of earnings will shift to the left 
D) the total demand for training will tend to fall 
A) the distribution of earnings will tend to be more skewed to the right 
B) the distribution of earnings will tend to be more skewed to the left 
C) the distribution of earnings will shift to the left 
D) the total demand for training will tend to fall

Question 3

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). 
-The mean of this distribution is:

Accepted Answer

A) 10,000 workers 
B) between $20,000 and $30,000 
C) between $30,000 and $50,000 
D) between $60,000 and $90,000 
A) 10,000 workers 
B) between $20,000 and $30,000 
C) between $30,000 and $50,000 
D) between $60,000 and $90,000

Question 4

The multifactor explanation of the distribution of earnings typically excludes:

Accepted Answer

A) innate ability 
B) family background 
C) non-monetary returns to training 
D) risk-taking and chance 
A) innate ability 
B) family background 
C) non-monetary returns to training 
D) risk-taking and chance

Question 5

Which of the following is not an explanation advanced to explain the increase in earnings inequality?

Accepted Answer

A) Deindustrialization 
B) Import competition and the decline of unionism 
C) Demographic changes 
D) A decreased demand for skilled labor 
A) Deindustrialization 
B) Import competition and the decline of unionism 
C) Demographic changes 
D) A decreased demand for skilled labor

Question 6

refer to the following quintile earnings distribution data$$\begin{array} { l r } 
\text { Quintile } & \text { Percent } \
\text { Lowest } 20 \% & 4 \% \
\text { Second } 20 \% & 11 \% \
\text { Third } 20 \% & 16 \% \
\text { Fourth } 20 \% & 24 \% \
\text { Highest } 20 \% & 45 \%
\end{array}$$
-If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "80%" on the horizontal axis?

Accepted Answer

A) 11% 
B) 24% 
C) 45% 
D) 55% 
A) 11% 
B) 24% 
C) 45% 
D) 55%

Question 7

The U.S.earnings distribution is:

Accepted Answer

A) best represented by a straight line Lorenz curve 
B) not symmetrical around the mean earnings level 
C) concentrated around a rightward mode 
D) skewed to the left 
A) best represented by a straight line Lorenz curve 
B) not symmetrical around the mean earnings level 
C) concentrated around a rightward mode 
D) skewed to the left

Question 8

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). 
-The number of persons with annual earnings between $50,000 and $70,000 is:

Accepted Answer

A) 1,000 
B) 2,000 
C) 4,000 
D) 10,000 
A) 1,000 
B) 2,000 
C) 4,000 
D) 10,000

Question 9

If persons of greater ability also tend to invest more in human capital,then the impact of human capital on earnings will be:

Accepted Answer

A) understated 
B) overstated 
C) unaffected 
D) a direct impact 
A) understated 
B) overstated 
C) unaffected 
D) a direct impact

Question 10

Econometric studies that hold other factors constant show that:

Accepted Answer

A) there is a positive relationship between education and earnings 
B) there is no relationship between education and earnings 
C) there is no relationship between the quality of education and earnings 
D) formal schooling explains most of the differences in individual earnings 
A) there is a positive relationship between education and earnings 
B) there is no relationship between education and earnings 
C) there is no relationship between the quality of education and earnings 
D) formal schooling explains most of the differences in individual earnings

Question 11

Evidence indicates that most of the growth in earnings inequality since 1970 is:

Accepted Answer

A) within each age group and within each industry 
B) within each age group and between industries 
C) between age groups and within each industry 
D) between age groups and between industries 
A) within each age group and within each industry 
B) within each age group and between industries 
C) between age groups and within each industry 
D) between age groups and between industries

Question 12

Among the following industrial countries,income inequality is greatest in:

Accepted Answer

A) Germany 
B) Italy 
C) Canada 
D) the U.S. 
A) Germany 
B) Italy 
C) Canada 
D) the U.S.

Question 13

The 90-10 wage ratio for workers over the period 1973 - present shows that:

Accepted Answer

A) inequality increased among both men and women 
B) inequality increased among men but decreased among women 
C) inequality increased among women but decreased among men 
D) inequality decreased among both men and women 
A) inequality increased among both men and women 
B) inequality increased among men but decreased among women 
C) inequality increased among women but decreased among men 
D) inequality decreased among both men and women

Question 14

Family background influences an individual's earnings:

Accepted Answer

A) directly,but not through any indirect effects on human capital decisions 
B) directly,and indirectly through greater investments in human capital 
C) indirectly through greater investments in human capital,but not directly 
D) directly,and indirectly through its impact on discrimination 
A) directly,but not through any indirect effects on human capital decisions 
B) directly,and indirectly through greater investments in human capital 
C) indirectly through greater investments in human capital,but not directly 
D) directly,and indirectly through its impact on discrimination

Question 15

According to empirical evidence,there is _____ life-cycle mobility within the earnings distribution.Therefore,the distribution of annual earnings is _____ unequal than the distribution of lifetime earnings.

Accepted Answer

A) little; more 
B) little; less 
C) substantial; more 
D) substantial; less 
A) little; more 
B) little; less 
C) substantial; more 
D) substantial; less

Question 16

refer to the following quintile earnings distribution data$$\begin{array} { l r } 
\text { Quintile } & \text { Percent } \
\text { Lowest } 20 \% & 4 \% \
\text { Second } 20 \% & 11 \% \
\text { Third } 20 \% & 16 \% \
\text { Fourth } 20 \% & 24 \% \
\text { Highest } 20 \% & 45 \%
\end{array}$$
-The median of this distribution is in the:

Accepted Answer

A) second 20% 
B) third 20% 
C) fourth 20% 
D) highest 20% 
A) second 20% 
B) third 20% 
C) fourth 20% 
D) highest 20%

Question 17

The U.S.earnings distribution is:

Accepted Answer

A) skewed toward lower earnings 
B) skewed toward higher earnings 
C) symmetrical 
D) uniform 
A) skewed toward lower earnings 
B) skewed toward higher earnings 
C) symmetrical 
D) uniform

Question 18

For the U.S.earnings distribution,the:

Accepted Answer

A) mode is less than the median 
B) median is greater than the mean 
C) mean is less than the median 
D) mode is greater than the mean 
A) mode is less than the median 
B) median is greater than the mean 
C) mean is less than the median 
D) mode is greater than the mean

Question 19

The basic human capital model predicts that:

Accepted Answer

A) the greater are the differences in the quantity and quality of training,the greater is the inequality of earnings. 
B) the greater the length and quality of one's formal training,the higher will be the investment costs and the lower will be expected earnings 
C) the earnings distribution will be symmetric 
D) the Gini coefficient will eventually become zero 
A) the greater are the differences in the quantity and quality of training,the greater is the inequality of earnings. 
B) the greater the length and quality of one's formal training,the higher will be the investment costs and the lower will be expected earnings 
C) the earnings distribution will be symmetric 
D) the Gini coefficient will eventually become zero

Which of the following factors does not help explain why the earnings distribution is skewed to the right?

If the various elements of innate ability are positively correlated and interact with one another multiplicatively rather than additively to determine earnings,then:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The mean of this distribution is:

The multifactor explanation of the distribution of earnings typically excludes:

Which of the following is not an explanation advanced to explain the increase in earnings inequality?

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "80%" on the horizontal axis?

The U.S.earnings distribution is:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The number of persons with annual earnings between $50,000 and $70,000 is:

If persons of greater ability also tend to invest more in human capital,then the impact of human capital on earnings will be:

Econometric studies that hold other factors constant show that:

Evidence indicates that most of the growth in earnings inequality since 1970 is:

Among the following industrial countries,income inequality is greatest in:

The 90-10 wage ratio for workers over the period 1973 - present shows that:

Family background influences an individual's earnings:

According to empirical evidence,there is _ life-cycle mobility within the earnings distribution.Therefore,the distribution of annual earnings is _ unequal than the distribution of lifetime earnings.

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -The median of this distribution is in the:

The U.S.earnings distribution is:

For the U.S.earnings distribution,the:

The basic human capital model predicts that:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

Exam 16: The Distribution of Personal Earnings

Which of the following factors does not help explain why the earnings distribution is skewed to the right?

If the various elements of innate ability are positively correlated and interact with one another multiplicatively rather than additively to determine earnings,then:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The mean of this distribution is:

The multifactor explanation of the distribution of earnings typically excludes:

Which of the following is not an explanation advanced to explain the increase in earnings inequality?

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "80%" on the horizontal axis?

The U.S.earnings distribution is:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The number of persons with annual earnings between $50,000 and $70,000 is:

If persons of greater ability also tend to invest more in human capital,then the impact of human capital on earnings will be:

Econometric studies that hold other factors constant show that:

Evidence indicates that most of the growth in earnings inequality since 1970 is:

Among the following industrial countries,income inequality is greatest in:

The 90-10 wage ratio for workers over the period 1973 - present shows that:

Family background influences an individual's earnings:

According to empirical evidence,there is _____ life-cycle mobility within the earnings distribution.Therefore,the distribution of annual earnings is _____ unequal than the distribution of lifetime earnings.

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -The median of this distribution is in the:

The U.S.earnings distribution is:

For the U.S.earnings distribution,the:

The basic human capital model predicts that:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

According to empirical evidence,there is _ life-cycle mobility within the earnings distribution.Therefore,the distribution of annual earnings is _ unequal than the distribution of lifetime earnings.