Question 1

If employers have imperfect information about job applicants, it may be rational for them to use:

Accepted Answer

A) employer prejudice. 
B) worker prejudice. 
C) consumer prejudice. 
D) statistical discrimination. 
E) occupational segregation. 
A) employer prejudice. 
B) worker prejudice. 
C) consumer prejudice. 
D) statistical discrimination. 
E) occupational segregation.

Question 2

For economists, discrimination is difficult to rationalize because:

Accepted Answer

A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market, there is no such thing as discrimination. 
D) economists know that in the real world, personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate. 
A) it is costly to those who discriminate. 
B) the firms can actually reap greater profits by discriminating between their workers. 
C) in a freely functioning labor market, there is no such thing as discrimination. 
D) economists know that in the real world, personal prejudices do not exist. 
E) wages will not be allowed to fall below their natural equilibrium rate.

Question 3

Which of the following determines comparable worth of a particular job?

Accepted Answer

A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory 
A) Cultural background of the applicants 
B) Gender of the candidates applying for a job 
C) Race of the applicants for the job 
D) Level of formal education required for a job 
E) National origin of the workers in a factory

Question 4

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

Accepted Answer

A) True 
 B)False

Question 5

The figure below shows the supply curve for labor. Figure 15.1   Refer to Figure 15.1.When wage rate increases from W2 to W3 :

Accepted Answer

A) quantity of labor supplied increases from Q1 to Q4. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q4. 
E) quantity of labor supplied increases from Q3 to Q5. 
A) quantity of labor supplied increases from Q1 to Q4. 
B) quantity of labor supplied decreases from Q3 to Q4. 
C) quantity of labor supplied increases from Q4 to Q5. 
D) quantity of labor supplied increases from Q2 to Q4. 
E) quantity of labor supplied increases from Q3 to Q5.

Question 6

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

Accepted Answer

A) True 
 B)False

Question 7

As the wage rate increases, the quantity supplied of labor in a market will:

Accepted Answer

A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant. 
A) invariably increase 
B) invariably decrease. 
C) first increase and then decrease. 
D) first decrease and then increase. 
E) remain constant.

Question 8

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following refers to human capital?

Accepted Answer

A) Money spent by business to acquire labor 
B) The acquired skill and productivity of workers 
C) The plant and equipment used with labor 
D) Money spent on education. 
E) Money that workers save 
A) Money spent by business to acquire labor 
B) The acquired skill and productivity of workers 
C) The plant and equipment used with labor 
D) Money spent on education. 
E) Money that workers save

Question 10

The greatest number of recent immigrants to the U.S.come from Mexico because of:

Accepted Answer

A) political insecurity in Mexico. 
B) religious insecurity in Mexico. 
C) proximity and wage differentials. 
D) racial discrimination in Mexico. 
E) greater social security in the United States. 
A) political insecurity in Mexico. 
B) religious insecurity in Mexico. 
C) proximity and wage differentials. 
D) racial discrimination in Mexico. 
E) greater social security in the United States.

Question 11

The labor demand curve is based on the firm's:

Accepted Answer

A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curves. 
D) average cost curves. 
E) marginal revenue product curve. 
A) average revenue curve. 
B) marginal product curve. 
C) marginal cost curves. 
D) average cost curves. 
E) marginal revenue product curve.

Question 12

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Accepted Answer

A) True 
 B)False

Question 13

Wage differentials exist because not all workers and all jobs are alike.

Accepted Answer

A) True 
 B)False

Question 14

A large number of U.S.firms send jobs to low-wage nations as it enables them to:

Accepted Answer

A) raise the price of their products. 
B) reduce their cost of production. 
C) get better quality products. 
D) obtain diversified products. 
E) politically dominate the economies where they are offshoring. 
A) raise the price of their products. 
B) reduce their cost of production. 
C) get better quality products. 
D) obtain diversified products. 
E) politically dominate the economies where they are offshoring.

Question 15

The figure given below shows the income-leisure trade off of an individual. Figure 15.6   AB and AC: Income constraints of the individual
I1, I2, and I3 curves show the income leisure choices of the individual.
In Figure 15.6, if the income constraint of the individual is given by the line AB, he maximizes his utility by choosing _____ hours of leisure and earns an income of _____.

Accepted Answer

A) 0;Y2 
B) L1;Y7 
C) L2;Y5 
D) L3;Y4 
E) L4;Y7 
A) 0;Y2 
B) L1;Y7 
C) L2;Y5 
D) L3;Y4 
E) L4;Y7

Question 16

Which of the following statements is true?

Accepted Answer

A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree initially earns more than a worker without a college degree but the latter surpasses the former in due course of time. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time. 
A) Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. 
B) A worker with a college degree always earns less than a worker without a college degree. 
C) A worker with a college degree initially earns more than a worker without a college degree but the latter surpasses the former in due course of time. 
D) A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. 
E) Both the workers earn equal incomes after a certain period of time.

Question 17

The figures given below show the demand (D)and supply (S)curves of labor in two different markets. Figure 15.3   From Figure 15.3, calculate the amount of the wage differential.

Accepted Answer

A) $6 
B) $18 
C) $2 
D) $20 
E) $15 
A) $6 
B) $18 
C) $2 
D) $20 
E) $15

Question 18

The labor-market-supply curve illustrates that, as the wage rate increases, the number of number of hours that each person is willing and able to work rises.

Accepted Answer

A) True 
 B)False

Question 19

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 15.7   In Figure 15.7, assume that micro- and macroeconomists must be paid the same because of comparable-worth laws.If the wage is $12, then:

Accepted Answer

A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium. 
A) there is a shortage of macroeconomists and a surplus of microeconomists. 
B) there is a shortage of microeconomists and a surplus of macroeconomists. 
C) there is a shortage of both macroeconomists and microeconomists. 
D) there is a surplus of both macroeconomists and microeconomists. 
E) the labor market for economists as a whole is in equilibrium.

Question 20

If the tax rate increases with increase in income, the income tax structure is said to be _____.

Accepted Answer

A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed 
A) proportional 
B) regressive 
C) progressive 
D) leptokurtic 
E) negatively skewed

Exam 26: The Labor Market

If employers have imperfect information about job applicants, it may be rational for them to use:

For economists, discrimination is difficult to rationalize because:

Which of the following determines comparable worth of a particular job?

Economic theory suggests that the consumer-prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group.

The figure below shows the supply curve for labor. Figure 15.1 Refer to Figure 15.1.When wage rate increases from W2 to W3 :

Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all.

As the wage rate increases, the quantity supplied of labor in a market will:

Illegal immigrants pay social security tax.Therefore they receive social security benefits on retirement.

Which of the following refers to human capital?

The greatest number of recent immigrants to the U.S.come from Mexico because of:

The labor demand curve is based on the firm's:

It is often profitable for the white-males to accept lower paying positions to avoid working with women.

Wage differentials exist because not all workers and all jobs are alike.

A large number of U.S.firms send jobs to low-wage nations as it enables them to:

Which of the following statements is true?

The figures given below show the demand (D)and supply (S)curves of labor in two different markets. Figure 15.3 From Figure 15.3, calculate the amount of the wage differential.

The labor-market-supply curve illustrates that, as the wage rate increases, the number of number of hours that each person is willing and able to work rises.

The following figures show the demand (D)and supply (S)curves of micro and macro economists. Figure 15.7 In Figure 15.7, assume that micro- and macroeconomists must be paid the same because of comparable-worth laws.If the wage is $12, then:

If the tax rate increases with increase in income, the income tax structure is said to be _____.

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Capital Markets

Economic Growth

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

The figure below shows the supply curve for labor. Figure 15.1 Refer to Figure 15.1.When wage rate increases from W₂to W₃: