Question 1

The declining college wage premium in the 1970s is generally attributed to the:

Accepted Answer

A) growing demand for college graduates in that period 
B) shrinking supply of college graduates in that period 
C) growing supply of college graduates in that period 
D) shift of employment from manufacturing to services 
A) growing demand for college graduates in that period 
B) shrinking supply of college graduates in that period 
C) growing supply of college graduates in that period 
D) shift of employment from manufacturing to services

Question 2

Evidence suggests that,during recessions,the college enrollment rate:

Accepted Answer

A) rises,because the benefit of attending college rises 
B) rises,because the effect of reduced ability to pay is swamped by the effect of lower opportunity costs 
C) rises,because the effect of reduced ability to pay is swamped by the effect of increased state funding to counter the recession 
D) falls,because the effect of lower opportunity cost is swamped by the effect of reduced ability to pay 
A) rises,because the benefit of attending college rises 
B) rises,because the effect of reduced ability to pay is swamped by the effect of lower opportunity costs 
C) rises,because the effect of reduced ability to pay is swamped by the effect of increased state funding to counter the recession 
D) falls,because the effect of lower opportunity cost is swamped by the effect of reduced ability to pay

Question 3

Which of the following statements about on-the-job training is most supported by empirical evidence?

Accepted Answer

A) A greater percentage of men than women receive on-the-job training 
B) Job training is more common at smaller firms than larger ones 
C) Workers with more formal education also tend to receive more on-the-job training 
D) Training does not lead to higher job performance ratings 
A) A greater percentage of men than women receive on-the-job training 
B) Job training is more common at smaller firms than larger ones 
C) Workers with more formal education also tend to receive more on-the-job training 
D) Training does not lead to higher job performance ratings

Question 4

The private rate of return on human capital may _____ the social rate because _____.

Accepted Answer

A) understate; schooling is subsidized 
B) understate; schooling provides external benefits 
C) overstate; schooling provides external benefits 
D) overstate; schooling and ability are positively correlated 
A) understate; schooling is subsidized 
B) understate; schooling provides external benefits 
C) overstate; schooling provides external benefits 
D) overstate; schooling and ability are positively correlated

Question 5

Typically,as the level of education increases:

Accepted Answer

A) costs rise and benefits fall,reducing the internal rate of return to education 
B) costs rise and benefits fall,increasing the internal rate of return 
C) costs fall and benefits rise,increasing the internal rate of return 
D) both costs and benefits fall,having an unpredictable effect on the rate of return 
A) costs rise and benefits fall,reducing the internal rate of return to education 
B) costs rise and benefits fall,increasing the internal rate of return 
C) costs fall and benefits rise,increasing the internal rate of return 
D) both costs and benefits fall,having an unpredictable effect on the rate of return

Question 6

Private loans to finance investments in human capital:

Accepted Answer

A) are difficult to obtain because the financial return to education has been decreasing 
B) are difficult to obtain because a person cannot readily pledge collateral on human capital 
C) are granted by banks just as they are to finance investment in machinery or houses,without regard to collateral 
D) are rarely subsidized by government because they are granted readily by private banks 
A) are difficult to obtain because the financial return to education has been decreasing 
B) are difficult to obtain because a person cannot readily pledge collateral on human capital 
C) are granted by banks just as they are to finance investment in machinery or houses,without regard to collateral 
D) are rarely subsidized by government because they are granted readily by private banks

Question 7

Based on standardized test scores for students in the following countries,which has the highest measured schooling quality?

Accepted Answer

A) France 
B) India 
C) U.S. 
D) Japan 
A) France 
B) India 
C) U.S. 
D) Japan

Question 8

Mary's employer is considering her for a firm-specific training program that will cost $3 per hour.Her current marginal revenue product is $15 per hour and will rise to $20 upon completion of the program.Of the following,Mary's training and post-training wage,respectively,will most likely be:

Accepted Answer

A) $15; $20 
B) $15; $17 
C) $12; $15 
D) $12; $20 
A) $15; $20 
B) $15; $17 
C) $12; $15 
D) $12; $20

Question 9

Most rate-of-return studies of education indicate that:

Accepted Answer

A) social rates of return generally exceed private rates of return 
B) private rates of return are about 2.5% - 7% 
C) private rates of return are about 10% - 15% 
D) private rates of return have held steady over the 1956 - 2008 period 
A) social rates of return generally exceed private rates of return 
B) private rates of return are about 2.5% - 7% 
C) private rates of return are about 10% - 15% 
D) private rates of return have held steady over the 1956 - 2008 period

Question 10

based on the following diagram:
 
-In deciding whether or not to go to college,one would compare the discounted value of:

Accepted Answer

A) area 3 to the discounted value of area 1 
B) area 3 to the discounted value of area 2 
C) area 3 to the discounted value of areas 1 and 2 
D) areas 2 and 3 to the discounted value of area 1 
A) area 3 to the discounted value of area 1 
B) area 3 to the discounted value of area 2 
C) area 3 to the discounted value of areas 1 and 2 
D) areas 2 and 3 to the discounted value of area 1

Question 11

At the optimal amount of education,the internal rate of return on education is:

Accepted Answer

A) maximized 
B) higher than the market rate of interest 
C) lower than the market rate of interest 
D) equal to the market rate of interest 
A) maximized 
B) higher than the market rate of interest 
C) lower than the market rate of interest 
D) equal to the market rate of interest

Question 12

Which of the following is a true statement?

Accepted Answer

A) In 2008,41% more females than males graduated from college 
B) Research by Goldin,Katz,and Kuziemko attribute most of the increase in female college attendance rates to lower birth rates among teenagers 
C) Women achieved college attendance parity with males by the early 1960s 
D) Since 1970,High school girls have reduced the amount of math and science classes taken to concentrate instead on the humanities classes they will likely take in college 
A) In 2008,41% more females than males graduated from college 
B) Research by Goldin,Katz,and Kuziemko attribute most of the increase in female college attendance rates to lower birth rates among teenagers 
C) Women achieved college attendance parity with males by the early 1960s 
D) Since 1970,High school girls have reduced the amount of math and science classes taken to concentrate instead on the humanities classes they will likely take in college

Question 13

If part of the typical college graduates additional earnings is attributable to ability and not to education:

Accepted Answer

A) the screening hypothesis must be false 
B) estimated rates of return will overstate the actual rate of return 
C) there will be less dispersion in the distribution of earnings than otherwise 
D) the social rate of return will understate the private rate 
A) the screening hypothesis must be false 
B) estimated rates of return will overstate the actual rate of return 
C) there will be less dispersion in the distribution of earnings than otherwise 
D) the social rate of return will understate the private rate

Question 14

Personal differences in demand for human capital curves can be explained by differences in all of the following,except:

Accepted Answer

A) ability 
B) access to investment funds 
C) discrimination 
D) discount rates 
A) ability 
B) access to investment funds 
C) discrimination 
D) discount rates

Question 15

Specific training:

Accepted Answer

A) will be paid for by the employee in the form of a reduced wage 
B) occurs once a student majors in a specific subject area 
C) helps to make labor a quasi-fixed resource 
D) reduces the worker's value to the firm,because the worker's wage rate would have to rise 
A) will be paid for by the employee in the form of a reduced wage 
B) occurs once a student majors in a specific subject area 
C) helps to make labor a quasi-fixed resource 
D) reduces the worker's value to the firm,because the worker's wage rate would have to rise

Question 16

The increase in the college wage premium during the 1980s was most likely caused by:

Accepted Answer

A) increased demand for college graduates due to changes in the structure of the economy 
B) increased supply of college graduates from the large "baby boom" generation 
C) changes in technology that reduced the relative supply of college-trained workers 
D) increased demand for high school graduates,particularly males 
A) increased demand for college graduates due to changes in the structure of the economy 
B) increased supply of college graduates from the large "baby boom" generation 
C) changes in technology that reduced the relative supply of college-trained workers 
D) increased demand for high school graduates,particularly males

Question 17

refer to the following diagram,in which MRPS1U1B1uS1U1B0 refers to the marginal revenue product of an untrained worker,while MRPS1U1B1tS1U1B0 refers to this worker's marginal revenue product as a result of a program of on-the-job training.
  
-In the case of specific training,the wage rate during the training period will be _____,while the post-training wage will be _____.

Accepted Answer

A) W1; W3 
B) W1; between W2 and W3 
C) W2; between W2 and W3 
D) W2; W2 
A) W1; W3 
B) W1; between W2 and W3 
C) W2; between W2 and W3 
D) W2; W2

Question 18

Which one of the following circumstances would most likely lead to increased investment in education by women?

Accepted Answer

A) An increase in the likelihood of interrupted labor market careers 
B) Improved employment opportunities for women 
C) Higher discount rates for women than men 
D) Persistent discrimination against women 
A) An increase in the likelihood of interrupted labor market careers 
B) Improved employment opportunities for women 
C) Higher discount rates for women than men 
D) Persistent discrimination against women

Question 19

Empirical evidence suggests that:

Accepted Answer

A) Gender differences in earnings explain most of the gender wage gap 
B) Most training is specific rather than general 
C) Training appears to have little impact on wages 
D) Training lengthens employment durations 
A) Gender differences in earnings explain most of the gender wage gap 
B) Most training is specific rather than general 
C) Training appears to have little impact on wages 
D) Training lengthens employment durations

Question 20

Consider an individual who will invest a total of $10,000 in direct and indirect costs for training in order to increase earnings by $12,500 for the next year.Suppose the interest rate is 8%.If this person plans to retire the following year,the net present value of this investment is closest to:

Accepted Answer

A) zero 
B) $1600 
C) $2500 
D) $11,600 
A) zero 
B) $1600 
C) $2500 
D) $11,600

The declining college wage premium in the 1970s is generally attributed to the:

Evidence suggests that,during recessions,the college enrollment rate:

Which of the following statements about on-the-job training is most supported by empirical evidence?

The private rate of return on human capital may _ the social rate because _.

Typically,as the level of education increases:

Private loans to finance investments in human capital:

Based on standardized test scores for students in the following countries,which has the highest measured schooling quality?

Mary's employer is considering her for a firm-specific training program that will cost $3 per hour.Her current marginal revenue product is $15 per hour and will rise to $20 upon completion of the program.Of the following,Mary's training and post-training wage,respectively,will most likely be:

Most rate-of-return studies of education indicate that:

based on the following diagram: -In deciding whether or not to go to college,one would compare the discounted value of:

At the optimal amount of education,the internal rate of return on education is:

Which of the following is a true statement?

If part of the typical college graduates additional earnings is attributable to ability and not to education:

Personal differences in demand for human capital curves can be explained by differences in all of the following,except:

Specific training:

The increase in the college wage premium during the 1980s was most likely caused by:

Which one of the following circumstances would most likely lead to increased investment in education by women?

Empirical evidence suggests that:

Consider an individual who will invest a total of $10,000 in direct and indirect costs for training in order to increase earnings by $12,500 for the next year.Suppose the interest rate is 8%.If this person plans to retire the following year,the net present value of this investment is closest to:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

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

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

Exam 4: Labor Quality: Investing in Human Capital

The declining college wage premium in the 1970s is generally attributed to the:

Evidence suggests that,during recessions,the college enrollment rate:

Which of the following statements about on-the-job training is most supported by empirical evidence?

The private rate of return on human capital may _____ the social rate because _____.

Typically,as the level of education increases:

Private loans to finance investments in human capital:

Based on standardized test scores for students in the following countries,which has the highest measured schooling quality?

Mary's employer is considering her for a firm-specific training program that will cost $3 per hour.Her current marginal revenue product is $15 per hour and will rise to $20 upon completion of the program.Of the following,Mary's training and post-training wage,respectively,will most likely be:

Most rate-of-return studies of education indicate that:

based on the following diagram: -In deciding whether or not to go to college,one would compare the discounted value of:

At the optimal amount of education,the internal rate of return on education is:

Which of the following is a true statement?

If part of the typical college graduates additional earnings is attributable to ability and not to education:

Personal differences in demand for human capital curves can be explained by differences in all of the following,except:

Specific training:

The increase in the college wage premium during the 1980s was most likely caused by:

Which one of the following circumstances would most likely lead to increased investment in education by women?

Empirical evidence suggests that:

Consider an individual who will invest a total of $10,000 in direct and indirect costs for training in order to increase earnings by $12,500 for the next year.Suppose the interest rate is 8%.If this person plans to retire the following year,the net present value of this investment is closest to:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

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

The Distribution of Personal Earnings

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

The private rate of return on human capital may _ the social rate because _.