Question 1

In calculating the social rate of return on a human capital investment one would:

Accepted Answer

A) deduct taxes from incremental earnings 
B) treat public subsidies to education as a part of the costs 
C) exclude any external benefits associated with the investment 
D) treat public subsidies to training as part of the benefits 
A) deduct taxes from incremental earnings 
B) treat public subsidies to education as a part of the costs 
C) exclude any external benefits associated with the investment 
D) treat public subsidies to training as part of the benefits

Question 2

The primary indirect cost of going to college is:

Accepted Answer

A) earnings given up by not entering the labor market directly after high school 
B) an enhanced future flow of earnings 
C) the value of room and board that would have been provided at home 
D) tuition expenses 
A) earnings given up by not entering the labor market directly after high school 
B) an enhanced future flow of earnings 
C) the value of room and board that would have been provided at home 
D) tuition expenses

Question 3

All else equal,investment in education will be greater,the:

Accepted Answer

A) higher the interest rate 
B) greater the direct cost of education 
C) lower the expected retirement age 
D) greater the earnings differential between more and less educated workers 
A) higher the interest rate 
B) greater the direct cost of education 
C) lower the expected retirement age 
D) greater the earnings differential between more and less educated workers

Question 4

"Expenditures on education and training can be treated as investment in human capital." This statement is:

Accepted Answer

A) true-current expenses are incurred with the expectation they will be more than compensated for by greater future returns 
B) true-education must be financed by borrowing money 
C) false-the market for college loans is too imperfect to be consistent with investment models 
D) false-education is purchased for its current (consumption)value,not its future (investment)value 
A) true-current expenses are incurred with the expectation they will be more than compensated for by greater future returns 
B) true-education must be financed by borrowing money 
C) false-the market for college loans is too imperfect to be consistent with investment models 
D) false-education is purchased for its current (consumption)value,not its future (investment)value

Question 5

Charley's employer is considering him for a general training program that will cost $3 per hour.His current marginal revenue product is $15 per hour and will rise to $20 upon completion of the program.Of the following,Charley'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 6

Other things equal,the lower the cost of a human capital investment:

Accepted Answer

A) the larger the net present value of the investment 
B) the lower the rate of return on the investment 
C) the fewer the number of people who will find the investment profitable 
D) the lower the interest rate on funds borrowed to finance the investment 
A) the larger the net present value of the investment 
B) the lower the rate of return on the investment 
C) the fewer the number of people who will find the investment profitable 
D) the lower the interest rate on funds borrowed to finance the investment

Question 7

Studies of the rate of return on human capital must be interpreted with care because:

Accepted Answer

A) the social return may not equal the private return 
B) past differences in earnings are no guarantee of future differences in earnings 
C) a high average rate of return is no guarantee of a high personal rate of return 
D) all of the above 
A) the social return may not equal the private return 
B) past differences in earnings are no guarantee of future differences in earnings 
C) a high average rate of return is no guarantee of a high personal rate of return 
D) all of the above

Question 8

Which one of the following observations would tend to widen the dispersion of earnings?

Accepted Answer

A) Banks charge higher interest rates on educational loans to those individuals most likely to face discrimination on the job 
B) Those with higher ability face higher costs of investment funds 
C) Human capital investment demand and supply curves are negatively correlated 
D) Poor families pay a larger proportion of family income on education than rich families 
A) Banks charge higher interest rates on educational loans to those individuals most likely to face discrimination on the job 
B) Those with higher ability face higher costs of investment funds 
C) Human capital investment demand and supply curves are negatively correlated 
D) Poor families pay a larger proportion of family income on education than rich families

Question 9

An earnings-maximizing student would attend college if:

Accepted Answer

A) the net present value of a college education is zero 
B) the internal rate of return on a college education is positive 
C) the internal rate of return on a college education exceeds the interest rate on borrowed funds 
D) there is an earnings gain associated with a college education 
A) the net present value of a college education is zero 
B) the internal rate of return on a college education is positive 
C) the internal rate of return on a college education exceeds the interest rate on borrowed funds 
D) there is an earnings gain associated with a college education

In calculating the social rate of return on a human capital investment one would:

The primary indirect cost of going to college is:

All else equal,investment in education will be greater,the:

"Expenditures on education and training can be treated as investment in human capital." This statement is:

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

Other things equal,the lower the cost of a human capital investment:

Studies of the rate of return on human capital must be interpreted with care because:

Which one of the following observations would tend to widen the dispersion of earnings?

An earnings-maximizing student would attend college if:

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

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Exam 4: Labor Quality: Investing in Human Capital

In calculating the social rate of return on a human capital investment one would:

The primary indirect cost of going to college is:

All else equal,investment in education will be greater,the:

"Expenditures on education and training can be treated as investment in human capital." This statement is:

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

Other things equal,the lower the cost of a human capital investment:

Studies of the rate of return on human capital must be interpreted with care because:

Which one of the following observations would tend to widen the dispersion of earnings?

An earnings-maximizing student would attend college if:

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