Question 1

The most important determinant of migration is

Accepted Answer

A)  education. 
B)  race. 
C)  age. 
D)  experience. 
A)  education. 
B)  race. 
C)  age. 
D)  experience. C

Question 2

One immigrant to country X increased her annual wage from $8000 (in her home country)to $10,000 in Country X.There are no costs to moving.At the same time,one native worker saw their wage fall from $15,000 to $10,000 because of the entry of the one immigrant into the labor market.The native worker was producing $16,000 worth of goods and the immigrant added another $11,000 worth of goods to total output.Both continue to work at $10,000.Given that nothing else happens,which of the following statements is true? Country X (not counting the immigrant)is

Accepted Answer

A)  better off by $5000. 
B)  worse off by $5000. 
C)  better off by $1000. 
D)  worse off by $4000. 
A)  better off by $5000. 
B)  worse off by $5000. 
C)  better off by $1000. 
D)  worse off by $4000. C

Question 3

Average job tenure is lower in the United States than in most other industrialized countries.Theory predicts that this could be because

Accepted Answer

A)  the United States is less densely populated. 
B)  American workers receive higher levels of firm-specific training. 
C)  the costs of residential mobility are lower in the Unites States. 
D)  most American workers have employer-based health insurance. 
A)  the United States is less densely populated. 
B)  American workers receive higher levels of firm-specific training. 
C)  the costs of residential mobility are lower in the Unites States. 
D)  most American workers have employer-based health insurance. C

Question 4

For workers who emigrate to the United States from a country with a less equal distribution of earnings,

Accepted Answer

A)  the largest potential gain exists for unskilled workers. 
B)  the largest potential gain exists for skilled workers. 
C)  immigrants will be positively selected with respect to skills. 
D)  immigrants will, on average, have a higher skill level than the workers who do not emigrate. 
A)  the largest potential gain exists for unskilled workers. 
B)  the largest potential gain exists for skilled workers. 
C)  immigrants will be positively selected with respect to skills. 
D)  immigrants will, on average, have a higher skill level than the workers who do not emigrate.

Question 5

An economist assumes while educated persons have lower informational costs to moving,younger adults have lower psychic costs of moving.Which of the following observations (if true)would support this assumption?

Accepted Answer

A)  Among people with the same education, we observe younger persons moving only if there is a large wage gain from moving. 
B)  Among people of the same age, we observe less educated persons moving only if there is a large wage gain from moving. 
C)  Both A and B support the assumption. 
D)  Neither A nor B support the assumption. 
A)  Among people with the same education, we observe younger persons moving only if there is a large wage gain from moving. 
B)  Among people of the same age, we observe less educated persons moving only if there is a large wage gain from moving. 
C)  Both A and B support the assumption. 
D)  Neither A nor B support the assumption.

Question 6

Which of the following can NOT explain why wages in Miami did not fall and unemployment rates did not increase after the Mariel boatlift?

Accepted Answer

A)  The labor demand curve shifted to the right. 
B)  Some people moved out of Miami in response to the influx. 
C)  Miami's economy went through a rapid "boom" right after the immigrants arrived. 
D)  A high percentage of the immigrants were unskilled workers. 
A)  The labor demand curve shifted to the right. 
B)  Some people moved out of Miami in response to the influx. 
C)  Miami's economy went through a rapid "boom" right after the immigrants arrived. 
D)  A high percentage of the immigrants were unskilled workers.

Question 7

What is the human capital view of mobility? Write out the Present Value of Net Benefits formula and use it in answering the question.

Accepted Answer

Human capital theory views mobility as a

Question 8

A friend claims that "If the United States prevents illegal immigrants from obtaining jobs,then that will create an equivalent number of jobs for deserving Americans." Evaluate the friend's claim with demand/supply analysis.

Accepted Answer

The basis of the answer here should refl

Question 9

Which of the following does NOT explain why people are less likely to move long distances than short distances?

Accepted Answer

A)  information costs 
B)  psychic costs 
C)  monetary costs 
D)  differences in available salaries 
A)  information costs 
B)  psychic costs 
C)  monetary costs 
D)  differences in available salaries

Question 10

Most immigrants' discounted lifetime earnings will be lower than those of comparable native workers.This shows

Accepted Answer

A)  that these immigrants miscalculated when deciding to emigrate. 
B)  that these immigrants made the right decision about immigration. 
C)  that these immigrants must be of lower quality than native workers. 
D)  nothing about their other options in their native country, so we cannot tell if their decision to emigrate was wise. 
A)  that these immigrants miscalculated when deciding to emigrate. 
B)  that these immigrants made the right decision about immigration. 
C)  that these immigrants must be of lower quality than native workers. 
D)  nothing about their other options in their native country, so we cannot tell if their decision to emigrate was wise.

Question 11

Suppose that by moving,one could increase one's income by 20%.Which of these events will reduce the likelihood a person will move?

Accepted Answer

A)  Wages in the person's profession, nationwide, fall dramatically. 
B)  The person becomes better educated. 
C)  Markets for the person's skill become less localized. 
D)  The person has no children, making a good fit less important. 
A)  Wages in the person's profession, nationwide, fall dramatically. 
B)  The person becomes better educated. 
C)  Markets for the person's skill become less localized. 
D)  The person has no children, making a good fit less important.

Question 12

How does earnings distribution help predict which skill groups within a sending country are most likely to emigrate from the country?

Accepted Answer

In countries that have relatively equal

Question 13

Which of the following would decrease the mobility of workers within a nation?

Accepted Answer

A)  laws making it more costly for employers to fire workers 
B)  laws requiring a mandatory waiting period before persons moving into a community qualify for welfare benefits 
C)  an increase in the percent of jobs that are unionized 
D)  all of the above 
A)  laws making it more costly for employers to fire workers 
B)  laws requiring a mandatory waiting period before persons moving into a community qualify for welfare benefits 
C)  an increase in the percent of jobs that are unionized 
D)  all of the above

Question 14

The annual rate of immigration to the United States (per thousand of United States population)

Accepted Answer

A)  reached an all-time high in the early 1990s. 
B)  reached a post-World War II high in the early 1990s. 
C)  reached an all-time high in the 1930s. 
D)  has been fairly constant since World War II. 
A)  reached an all-time high in the early 1990s. 
B)  reached a post-World War II high in the early 1990s. 
C)  reached an all-time high in the 1930s. 
D)  has been fairly constant since World War II.

Question 15

In a competitive industry,it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output.If the immigration of unskilled workers lowers the wage of unskilled workers,it will likely

Accepted Answer

A)  increase the demand for skilled workers due to the scale effect. 
B)  increase the demand for skilled workers due to the substitution effect. 
C)  decrease the wage but increase the employment of domestic unskilled workers. 
D)  All of the above will occur. 
A)  increase the demand for skilled workers due to the scale effect. 
B)  increase the demand for skilled workers due to the substitution effect. 
C)  decrease the wage but increase the employment of domestic unskilled workers. 
D)  All of the above will occur.

Question 16

If skilled and unskilled labor are gross substitutes and if an influx of unskilled immigrants drives down the wages paid to unskilled workers,it will also

Accepted Answer

A)  increase the wage of skilled workers. 
B)  decrease the wage of skilled workers. 
C)  either increase or decrease the wage of skilled workers. 
D)  cause no change in the wage of skilled workers. 
A)  increase the wage of skilled workers. 
B)  decrease the wage of skilled workers. 
C)  either increase or decrease the wage of skilled workers. 
D)  cause no change in the wage of skilled workers.

Question 17

Young workers are more likely to quit their jobs than older workers for all of the following reasons EXCEPT

Accepted Answer

A)  younger workers have a longer period over which to collect the benefits of a job change. 
B)  younger workers have lower psychic costs from mobility. 
C)  younger workers have better job matches. 
D)  younger workers have less firm-specific training. 
A)  younger workers have a longer period over which to collect the benefits of a job change. 
B)  younger workers have lower psychic costs from mobility. 
C)  younger workers have better job matches. 
D)  younger workers have less firm-specific training.

Question 18

Health insurance and pension plans that are not portable between companies

Accepted Answer

A)  increase job mobility as more workers change jobs to find the best health and pension plans. 
B)  cause quit rates to be higher than is socially useful. 
C)  increase the willingness of the company to pay for the training of its workers. 
D)  make the economy more flexible by making job matches that best adapt to changing conditions. 
A)  increase job mobility as more workers change jobs to find the best health and pension plans. 
B)  cause quit rates to be higher than is socially useful. 
C)  increase the willingness of the company to pay for the training of its workers. 
D)  make the economy more flexible by making job matches that best adapt to changing conditions.

Question 19

As long as immigrants are paid their marginal product and pay more in taxes than they consume in government benefits,then an increase of immigrants will cause

Accepted Answer

A)  aggregate income of natives to increase. 
B)  average wages of workers to increase. 
C)  individual incomes of all workers to increase. 
D)  average wages of workers to stay the same. 
A)  aggregate income of natives to increase. 
B)  average wages of workers to increase. 
C)  individual incomes of all workers to increase. 
D)  average wages of workers to stay the same.

Question 20

An increase in the discount rate would make a worker

Accepted Answer

A)  more likely to change jobs. 
B)  less likely to change jobs. 
C)  exactly as likely as before to change jobs. 
D)  either more or less likely to change jobs. 
A)  more likely to change jobs. 
B)  less likely to change jobs. 
C)  exactly as likely as before to change jobs. 
D)  either more or less likely to change jobs.

The most important determinant of migration is

Average job tenure is lower in the United States than in most other industrialized countries.Theory predicts that this could be because

For workers who emigrate to the United States from a country with a less equal distribution of earnings,

An economist assumes while educated persons have lower informational costs to moving,younger adults have lower psychic costs of moving.Which of the following observations (if true)would support this assumption?

Which of the following can NOT explain why wages in Miami did not fall and unemployment rates did not increase after the Mariel boatlift?

What is the human capital view of mobility? Write out the Present Value of Net Benefits formula and use it in answering the question.

A friend claims that "If the United States prevents illegal immigrants from obtaining jobs,then that will create an equivalent number of jobs for deserving Americans." Evaluate the friend's claim with demand/supply analysis.

Which of the following does NOT explain why people are less likely to move long distances than short distances?

Most immigrants' discounted lifetime earnings will be lower than those of comparable native workers.This shows

Suppose that by moving,one could increase one's income by 20%.Which of these events will reduce the likelihood a person will move?

How does earnings distribution help predict which skill groups within a sending country are most likely to emigrate from the country?

Which of the following would decrease the mobility of workers within a nation?

The annual rate of immigration to the United States (per thousand of United States population)

In a competitive industry,it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output.If the immigration of unskilled workers lowers the wage of unskilled workers,it will likely

If skilled and unskilled labor are gross substitutes and if an influx of unskilled immigrants drives down the wages paid to unskilled workers,it will also

Young workers are more likely to quit their jobs than older workers for all of the following reasons EXCEPT

Health insurance and pension plans that are not portable between companies

As long as immigrants are paid their marginal product and pay more in taxes than they consume in government benefits,then an increase of immigrants will cause

An increase in the discount rate would make a worker

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters

Exam 10: Worker Mobility: Migration, Immigration, and Turnover

The most important determinant of migration is

Average job tenure is lower in the United States than in most other industrialized countries.Theory predicts that this could be because

For workers who emigrate to the United States from a country with a less equal distribution of earnings,

An economist assumes while educated persons have lower informational costs to moving,younger adults have lower psychic costs of moving.Which of the following observations (if true)would support this assumption?

Which of the following can NOT explain why wages in Miami did not fall and unemployment rates did not increase after the Mariel boatlift?

What is the human capital view of mobility? Write out the Present Value of Net Benefits formula and use it in answering the question.

A friend claims that "If the United States prevents illegal immigrants from obtaining jobs,then that will create an equivalent number of jobs for deserving Americans." Evaluate the friend's claim with demand/supply analysis.

Which of the following does NOT explain why people are less likely to move long distances than short distances?

Most immigrants' discounted lifetime earnings will be lower than those of comparable native workers.This shows

Suppose that by moving,one could increase one's income by 20%.Which of these events will reduce the likelihood a person will move?

How does earnings distribution help predict which skill groups within a sending country are most likely to emigrate from the country?

Which of the following would decrease the mobility of workers within a nation?

The annual rate of immigration to the United States (per thousand of United States population)

In a competitive industry,it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output.If the immigration of unskilled workers lowers the wage of unskilled workers,it will likely

If skilled and unskilled labor are gross substitutes and if an influx of unskilled immigrants drives down the wages paid to unskilled workers,it will also

Young workers are more likely to quit their jobs than older workers for all of the following reasons EXCEPT

Health insurance and pension plans that are not portable between companies

As long as immigrants are paid their marginal product and pay more in taxes than they consume in government benefits,then an increase of immigrants will cause

An increase in the discount rate would make a worker

Introduction

Overview of the Labor Market

The Demand for Labor

Labor Demand Elasticities

Frictions in the Labor Market

Supply of Labor to the Economy: The Decision to Work

Labor Supply: Household Production, the Family, and the Life Cycle

Compensating Wage Differentials and Labor Markets

Investments in Human Capital: Education and Training

Pay and Productivity: Wage Determination within the Firm

Gender,Race,and Ethnicity in the Labor Market

Unions and the Labor Market

Unemployment

Inequality in Earnings

The Labor-Market Effects of International Trade and Production Sharing

Filters