Question 1

An increase in unemployment compensation is predicted to:

Accepted Answer

A) reduce unemployment by raising acceptance wage rates 
B) reduce unemployment by reducing acceptance wage rates 
C) increase unemployment by reducing acceptance wage rates 
D) increase unemployment by raising acceptance wage rates 
A) reduce unemployment by raising acceptance wage rates 
B) reduce unemployment by reducing acceptance wage rates 
C) increase unemployment by reducing acceptance wage rates 
D) increase unemployment by raising acceptance wage rates D

Question 2

Internal labor markets benefit workers in that such markets:

Accepted Answer

A) provide job security and opportunities for advancement 
B) allow wage rates to adapt quickly to changing economic conditions 
C) provide increased mobility from one firm to another as a method of career advancement 
D) pay for workers' general training 
A) provide job security and opportunities for advancement 
B) allow wage rates to adapt quickly to changing economic conditions 
C) provide increased mobility from one firm to another as a method of career advancement 
D) pay for workers' general training A

Question 3

All else equal,the acceptance wage:

Accepted Answer

A) is lower for union workers than nonunion workers 
B) is lower for African American youths than for white youths 
C) falls when unemployment benefits expire 
D) falls with increased education 
A) is lower for union workers than nonunion workers 
B) is lower for African American youths than for white youths 
C) falls when unemployment benefits expire 
D) falls with increased education C

Question 4

A fully anticipated reduction in the rate of inflation is expected to:

Accepted Answer

A) reduce the unemployment rate in the short run,but not in the long run 
B) reduce the unemployment rate in the both the short run and the long run 
C) increase the unemployment rate in the short run,but not in the long run 
D) have little impact on the unemployment rate in either the short run or the long run 
A) reduce the unemployment rate in the short run,but not in the long run 
B) reduce the unemployment rate in the both the short run and the long run 
C) increase the unemployment rate in the short run,but not in the long run 
D) have little impact on the unemployment rate in either the short run or the long run

Question 5

An unanticipated reduction in the rate of inflation is expected to:

Accepted Answer

A) reduce the unemployment rate in the short run,but not in the long run 
B) reduce the unemployment rate in the both the short run and the long run 
C) increase the unemployment rate in the short run,but not in the long run 
D) have very little impact on the unemployment rate in either the short run or the long run 
A) reduce the unemployment rate in the short run,but not in the long run 
B) reduce the unemployment rate in the both the short run and the long run 
C) increase the unemployment rate in the short run,but not in the long run 
D) have very little impact on the unemployment rate in either the short run or the long run

Question 6

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job:

-If $8.50 is the acceptance wage,what is the probability of Sally finding her next wage offer acceptable?

Accepted Answer

A) .25 
B) .30 
C) .50 
D) .70 
A) .25 
B) .30 
C) .50 
D) .70

Question 7

Which of the following is not typically given as a reason for job search?

Accepted Answer

A) Workers are heterogeneous 
B) Information is imperfect 
C) Firms' compensation packages differ from one another 
D) Firms are homogeneous 
A) Workers are heterogeneous 
B) Information is imperfect 
C) Firms' compensation packages differ from one another 
D) Firms are homogeneous

Question 8

Which of the following is not a benefit to employers of an internal labor market?

Accepted Answer

A) A greater return from investments in specific training 
B) A greater return from investment in general training 
C) A solution to a principal-agent problem 
D) Greater employee identification with the firm's objectives 
A) A greater return from investments in specific training 
B) A greater return from investment in general training 
C) A solution to a principal-agent problem 
D) Greater employee identification with the firm's objectives

Question 9

Which of the following contributes to a higher unemployment rate of African American youths compared to white youths?

Accepted Answer

A) Both wage offer distributions and acceptance wages are lower for African American youths 
B) The African American wage offer distribution is to the right of the white distribution 
C) White youths have a higher acceptance wage than African American youths 
D) African American youths have a higher acceptance wage than white youths 
A) Both wage offer distributions and acceptance wages are lower for African American youths 
B) The African American wage offer distribution is to the right of the white distribution 
C) White youths have a higher acceptance wage than African American youths 
D) African American youths have a higher acceptance wage than white youths

Question 10

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job:

-If Sally correctly anticipates an increase in the rate of inflation,then:

Accepted Answer

A) both the acceptance wage and the entire distribution will shift to the left,thereby leaving expected search duration unchanged 
B) the acceptance wage will shift to the right,thereby reducing expected search duration 
C) the entire distribution will shift to the right,but the acceptance wage will not,thereby reducing expected search duration 
D) both the acceptance wage and the entire distribution will shift to the right,thereby leaving expected search duration unchanged 
A) both the acceptance wage and the entire distribution will shift to the left,thereby leaving expected search duration unchanged 
B) the acceptance wage will shift to the right,thereby reducing expected search duration 
C) the entire distribution will shift to the right,but the acceptance wage will not,thereby reducing expected search duration 
D) both the acceptance wage and the entire distribution will shift to the right,thereby leaving expected search duration unchanged

Question 11

Which one of the following is associated with an internal labor market?

Accepted Answer

A) Port of entry disconnected from an external labor market 
B) Port of entry at the top of the job ladder 
C) Port of entry at the bottom of the job ladder 
D) The absence of a job hierarchy 
A) Port of entry disconnected from an external labor market 
B) Port of entry at the top of the job ladder 
C) Port of entry at the bottom of the job ladder 
D) The absence of a job hierarchy

Question 12

Because workers in internal labor markets are promoted on the basis of seniority:

Accepted Answer

A) such markets are allocatively inefficient because seniority takes precedence over ability 
B) dynamic efficiency is enhanced by removing a disincentive for older workers to pass along skills to younger workers 
C) static efficiency is enhanced by allocating the most able workers to each job 
D) some other scheme must be introduced,such as tournament pay,to improve efficiency in such markets 
A) such markets are allocatively inefficient because seniority takes precedence over ability 
B) dynamic efficiency is enhanced by removing a disincentive for older workers to pass along skills to younger workers 
C) static efficiency is enhanced by allocating the most able workers to each job 
D) some other scheme must be introduced,such as tournament pay,to improve efficiency in such markets

Question 13

Which of the following is not a characteristic of an internal labor market?

Accepted Answer

A) A port of entry,at which workers gain access to the bottom of the job ladder 
B) A hierarchy of jobs constituting the job ladder 
C) A set of rules and procedures governing the wage structure 
D) Equal access by internal and external workers to jobs at all skill levels 
A) A port of entry,at which workers gain access to the bottom of the job ladder 
B) A hierarchy of jobs constituting the job ladder 
C) A set of rules and procedures governing the wage structure 
D) Equal access by internal and external workers to jobs at all skill levels

Question 14

The job search model implies that:

Accepted Answer

A) the longer the expected job tenure,the lower the acceptance wage 
B) the higher the acceptance wage,the shorter the expected search duration 
C) expected search duration is longer during a recession 
D) if job searchers perceive that a recession is temporary,they will reduce their acceptance wages 
A) the longer the expected job tenure,the lower the acceptance wage 
B) the higher the acceptance wage,the shorter the expected search duration 
C) expected search duration is longer during a recession 
D) if job searchers perceive that a recession is temporary,they will reduce their acceptance wages

Question 15

The major cost of continued job search is:

Accepted Answer

A) the cost of placing job-wanted advertisements in the newspaper 
B) expenses paid to a job-placement agency 
C) foregone wages of job offers not accepted 
D) transportation expenses of going to job interviews 
A) the cost of placing job-wanted advertisements in the newspaper 
B) expenses paid to a job-placement agency 
C) foregone wages of job offers not accepted 
D) transportation expenses of going to job interviews

Question 16

The probability of accepting the next wage offer is:

Accepted Answer

A) higher,the higher is the acceptance wage 
B) lower,the lower is the acceptance wage 
C) lower,the higher is the acceptance wage 
D) higher,the higher is unemployment compensation 
A) higher,the higher is the acceptance wage 
B) lower,the lower is the acceptance wage 
C) lower,the higher is the acceptance wage 
D) higher,the higher is unemployment compensation

Question 17

The recent drop in the proportion of worker holding long-term jobs can be partially explained by:

Accepted Answer

A) the shift from defined contribution to defined benefit pension systems 
B) the shift from services to manufacturing 
C) the decline in technological progress and productivity 
D) the increase in women's labor force attachment 
A) the shift from defined contribution to defined benefit pension systems 
B) the shift from services to manufacturing 
C) the decline in technological progress and productivity 
D) the increase in women's labor force attachment

Question 18

Internal labor markets benefit senior employees by:

Accepted Answer

A) forcing the firm to pay all of the expenses associated with general training 
B) providing them with greater freedom through the informal work rules associated with such markets 
C) providing them with increased protection from job layoff 
D) protecting them from pay cuts when they leave the firm for other jobs 
A) forcing the firm to pay all of the expenses associated with general training 
B) providing them with greater freedom through the informal work rules associated with such markets 
C) providing them with increased protection from job layoff 
D) protecting them from pay cuts when they leave the firm for other jobs

Question 19

Wage rates are most likely to be set in accordance with administrative rules and procedures in the:

Accepted Answer

A) secondary labor market 
B) internal labor market 
C) external labor market 
D) orthodox labor market 
A) secondary labor market 
B) internal labor market 
C) external labor market 
D) orthodox labor market

Question 20

An unemployed worker will continue a job search provided the:

Accepted Answer

A) expected benefit of continued search is rising 
B) expected cost of continued search is falling 
C) last wage offer was below the acceptance wage 
D) worker is able to "store" job offers 
A) expected benefit of continued search is rising 
B) expected cost of continued search is falling 
C) last wage offer was below the acceptance wage 
D) worker is able to "store" job offers

An increase in unemployment compensation is predicted to:

Internal labor markets benefit workers in that such markets:

All else equal,the acceptance wage:

A fully anticipated reduction in the rate of inflation is expected to:

An unanticipated reduction in the rate of inflation is expected to:

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job: -If $8.50 is the acceptance wage,what is the probability of Sally finding her next wage offer acceptable?

Which of the following is not typically given as a reason for job search?

Which of the following is not a benefit to employers of an internal labor market?

Which of the following contributes to a higher unemployment rate of African American youths compared to white youths?

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job: -If Sally correctly anticipates an increase in the rate of inflation,then:

Which one of the following is associated with an internal labor market?

Because workers in internal labor markets are promoted on the basis of seniority:

Which of the following is not a characteristic of an internal labor market?

The job search model implies that:

The major cost of continued job search is:

The probability of accepting the next wage offer is:

The recent drop in the proportion of worker holding long-term jobs can be partially explained by:

Internal labor markets benefit senior employees by:

Wage rates are most likely to be set in accordance with administrative rules and procedures in the:

An unemployed worker will continue a job search provided the:

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

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

Exam 15: Job Search: External and Internal

An increase in unemployment compensation is predicted to:

Internal labor markets benefit workers in that such markets:

All else equal,the acceptance wage:

A fully anticipated reduction in the rate of inflation is expected to:

An unanticipated reduction in the rate of inflation is expected to:

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job: -If $8.50 is the acceptance wage,what is the probability of Sally finding her next wage offer acceptable?

Which of the following is not typically given as a reason for job search?

Which of the following is not a benefit to employers of an internal labor market?

Which of the following contributes to a higher unemployment rate of African American youths compared to white youths?

refer to the following graph, which shows the probability distribution of wage offers for Sally, who is currently unemployed and searching for a job: -If Sally correctly anticipates an increase in the rate of inflation,then:

Which one of the following is associated with an internal labor market?

Because workers in internal labor markets are promoted on the basis of seniority:

Which of the following is not a characteristic of an internal labor market?

The job search model implies that:

The major cost of continued job search is:

The probability of accepting the next wage offer is:

The recent drop in the proportion of worker holding long-term jobs can be partially explained by:

Internal labor markets benefit senior employees by:

Wage rates are most likely to be set in accordance with administrative rules and procedures in the:

An unemployed worker will continue a job search provided the:

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

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters