Question 1

If capital markets are ,then higher educational investment by an individual's parents will the optimal level of schooling.

Accepted Answer

A)  imperfect,decrease 
B)  imperfect,remain the same as 
C)  perfect,increase 
D)  perfect,decrease 
E)  perfect,remain the same as 
A)  imperfect,decrease 
B)  imperfect,remain the same as 
C)  perfect,increase 
D)  perfect,decrease 
E)  perfect,remain the same as E

Question 2

What is the marginal benefit of the investment for Sharon?

Accepted Answer

A)  $20 
B)  $25 
C)  $35 
D)  $40 
E)  $50 
A)  $20 
B)  $25 
C)  $35 
D)  $40 
E)  $50 B

Question 3

What will be the (approximate)optimal level of schooling if the discount rate increases to r = 3.0?

Accepted Answer

A)  1 year 
B)  2 years 
C)  3 years 
D)  4 years 
E)  5 years 
A)  1 year 
B)  2 years 
C)  3 years 
D)  4 years 
E)  5 years A

Question 4

Which of the following would not imply there is a spurious correlation between education and earnings?

Accepted Answer

A)  Karen receives a higher wage than Daniel because Karen has more innate talent,not because she went to college. 
B)  A master's degree is required to become a librarian to signal to employers an individual is committed to this career. 
C)  Jason is a high ability worker and chooses to attend college because he enjoys learning. 
D)  After receiving an engineering degree,Calvin is more productive as an electrical engineer. 
E)  Frank's parents force him to go to college,after which he obtains a job that is unrelated to his degree. 
A)  Karen receives a higher wage than Daniel because Karen has more innate talent,not because she went to college. 
B)  A master's degree is required to become a librarian to signal to employers an individual is committed to this career. 
C)  Jason is a high ability worker and chooses to attend college because he enjoys learning. 
D)  After receiving an engineering degree,Calvin is more productive as an electrical engineer. 
E)  Frank's parents force him to go to college,after which he obtains a job that is unrelated to his degree.

Question 5

Why do mainly young people attend college?

Accepted Answer

A)  Young people are further from retirement and thus have a higher expected return from college. 
B)  Young people face lower tuition costs. 
C)  Older individuals have jobs and would not be able to obtain better employment opportunities if they were better educated. 
D)  Older individuals have financial responsibilities and children they are unable to leave. 
E)  Younger individuals are smarter. 
A)  Young people are further from retirement and thus have a higher expected return from college. 
B)  Young people face lower tuition costs. 
C)  Older individuals have jobs and would not be able to obtain better employment opportunities if they were better educated. 
D)  Older individuals have financial responsibilities and children they are unable to leave. 
E)  Younger individuals are smarter.

Question 6

Suppose a worker's earnings are governed by w = 8· ln (1 + s)and r = 0.5.Given the unemployment rate with 7 of 16 workers unemployed,what is the optimal level of schooling?

Accepted Answer

A)  4 years 
B)  5 years 
C)  6 years 
D)  7 years 
E)  9 years 
A)  4 years 
B)  5 years 
C)  6 years 
D)  7 years 
E)  9 years

Question 7

Suppose there are two workers: individual A goes to college and individual B does not.What does this imply?

Accepted Answer

A)  Individual A faces a higher market interest rate. 
B)  Individual A faces a lower market interest rate. 
C)  Individual A faces a higher reservation schooling cost. 
D)  Individual A faces a higher marginal return to schooling. 
E)  Individual A faces a lower marginal return to schooling. 
A)  Individual A faces a higher market interest rate. 
B)  Individual A faces a lower market interest rate. 
C)  Individual A faces a higher reservation schooling cost. 
D)  Individual A faces a higher marginal return to schooling. 
E)  Individual A faces a lower marginal return to schooling.

Question 8

Human capital includes all of the following except

Accepted Answer

A)  learning how to use a new type of software. 
B)  obtaining an MBA to improve the possibility an individual gets a job in management. 
C)  moving from a rural area to a city where there are more jobs. 
D)  purchasing a new computer. 
E)  quitting smoking in order to improve a person's health. 
A)  learning how to use a new type of software. 
B)  obtaining an MBA to improve the possibility an individual gets a job in management. 
C)  moving from a rural area to a city where there are more jobs. 
D)  purchasing a new computer. 
E)  quitting smoking in order to improve a person's health.

Question 9

What is the net return to Carolina's educational investment?

Accepted Answer

A)  1 
B)  3 
C)  6 
D)  7 
E)  9 
A)  1 
B)  3 
C)  6 
D)  7 
E)  9

Question 10

Suppose there is another worker in the economy,whose schooling and earnings are governed by w = 6.3 ln (1 + s).This worker will accumulate years of school and is of ability. Hint: in this case,MW(s)= 6.3/(1 + s)

Accepted Answer

A)  more,higher 
B)  more,lower 
C)  less,higher 
D)  less,lower 
E)  the same,equal 
A)  more,higher 
B)  more,lower 
C)  less,higher 
D)  less,lower 
E)  the same,equal

Question 11

Suppose at any given time 7 of 16 workers are unemployed.What is the unemployment rate?

Accepted Answer

A)  7% 
B)  16% 
C)  44% 
D)  56% 
E)  73% 
A)  7% 
B)  16% 
C)  44% 
D)  56% 
E)  73%

Question 12

Which of the following is not a great labor market institution involved in accumulating human capital?

Accepted Answer

A)  the government 
B)  the family 
C)  schools and college 
D)  the Internet 
E)  firms 
A)  the government 
B)  the family 
C)  schools and college 
D)  the Internet 
E)  firms

Question 13

If capital markets are imperfect,high borrowing costs the acquisition of human capital but the rate of return.

Accepted Answer

A)  encourage,increase 
B)  encourage,depress 
C)  remain the same,depress 
D)  discourage,increase 
E)  discourage,decrease 
A)  encourage,increase 
B)  encourage,depress 
C)  remain the same,depress 
D)  discourage,increase 
E)  discourage,decrease

Question 14

If the average earnings of high school and college students declines,then the number of people attending college will:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  increase only among individuals with high natural abilities. 
E)  decrease only among individuals with high natural abilities. 
A)  increase. 
B)  decrease. 
C)  remain the same. 
D)  increase only among individuals with high natural abilities. 
E)  decrease only among individuals with high natural abilities.

Question 15

Which of the following would cause Brian to be willing to pay more to go to college?

Accepted Answer

A)  His expected wage after graduation decreases to $110K. 
B)  His wage at the retail store increases to $6K. 
C)  His discount rate increases to 15%. 
D)  His discount rate decreases to 8%. 
E)  His wage during college increases to $30K. 
A)  His expected wage after graduation decreases to $110K. 
B)  His wage at the retail store increases to $6K. 
C)  His discount rate increases to 15%. 
D)  His discount rate decreases to 8%. 
E)  His wage during college increases to $30K.

Question 16

An individual will choose the optimal amount of schooling so that the return to an additional year of school equals:

Accepted Answer

A)  the individual's total discounted earnings. 
B)  the marginal cost of an additional year of schooling. 
C)  the reservation schooling cost. 
D)  the expected return from investing the money in the bank. 
E)  B and D 
A)  the individual's total discounted earnings. 
B)  the marginal cost of an additional year of schooling. 
C)  the reservation schooling cost. 
D)  the expected return from investing the money in the bank. 
E)  B and D

Question 17

The future earnings of an individual at a rate.

Accepted Answer

A)  increase,constant 
B)  increase,increasing 
C)  increase,decreasing 
D)  decrease,constant 
E)  decrease,decreasing 
A)  increase,constant 
B)  increase,increasing 
C)  increase,decreasing 
D)  decrease,constant 
E)  decrease,decreasing

Question 18

If the returns to schooling do not equal the interest rate,then

Accepted Answer

A)  the market is operating efficiently. 
B)  individuals are not maximizing their utility. 
C)  firms are not maximizing their profits. 
D)  the market is in equilibrium. 
E)  the government can implement policies to increase overall wellbeing. 
A)  the market is operating efficiently. 
B)  individuals are not maximizing their utility. 
C)  firms are not maximizing their profits. 
D)  the market is in equilibrium. 
E)  the government can implement policies to increase overall wellbeing.

Question 19

What is the net return to Matt's educational investment?

Accepted Answer

A)  1 
B)  3 
C)  6 
D)  7 
E)  9 
A)  1 
B)  3 
C)  6 
D)  7 
E)  9

Question 20

If the net private return of return does not equal the social return to investment,then there exists a possibility for

Accepted Answer

A)  arbitrage. 
B)  a Pareto improvement. 
C)  government intervention. 
D)  a private company to make a profit. 
E)  B and C 
A)  arbitrage. 
B)  a Pareto improvement. 
C)  government intervention. 
D)  a private company to make a profit. 
E)  B and C

If capital markets are ,then higher educational investment by an individual's parents will the optimal level of schooling.

What is the marginal benefit of the investment for Sharon?

What will be the (approximate)optimal level of schooling if the discount rate increases to r = 3.0?

Which of the following would not imply there is a spurious correlation between education and earnings?

Why do mainly young people attend college?

Suppose a worker's earnings are governed by w = 8· ln (1 + s)and r = 0.5.Given the unemployment rate with 7 of 16 workers unemployed,what is the optimal level of schooling?

Suppose there are two workers: individual A goes to college and individual B does not.What does this imply?

Human capital includes all of the following except

What is the net return to Carolina's educational investment?

Suppose there is another worker in the economy,whose schooling and earnings are governed by w = 6.3 ln (1 + s).This worker will accumulate years of school and is of ability. Hint: in this case,MW(s)= 6.3/(1 + s)

Suppose at any given time 7 of 16 workers are unemployed.What is the unemployment rate?

Which of the following is not a great labor market institution involved in accumulating human capital?

If capital markets are imperfect,high borrowing costs the acquisition of human capital but the rate of return.

If the average earnings of high school and college students declines,then the number of people attending college will:

Which of the following would cause Brian to be willing to pay more to go to college?

An individual will choose the optimal amount of schooling so that the return to an additional year of school equals:

The future earnings of an individual at a rate.

If the returns to schooling do not equal the interest rate,then

What is the net return to Matt's educational investment?

If the net private return of return does not equal the social return to investment,then there exists a possibility for

Introduction

The Uslabor Market

The Short Run Demand for Labor

The Supply of Labor

On-The-Job Training

Competitive Equilibrium

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters

Exam 5: Human Capital

If capital markets are ,then higher educational investment by an individual's parents will the optimal level of schooling.

What is the marginal benefit of the investment for Sharon?

What will be the (approximate)optimal level of schooling if the discount rate increases to r = 3.0?

Which of the following would not imply there is a spurious correlation between education and earnings?

Why do mainly young people attend college?

Suppose a worker's earnings are governed by w = 8· ln (1 + s)and r = 0.5.Given the unemployment rate with 7 of 16 workers unemployed,what is the optimal level of schooling?

Suppose there are two workers: individual A goes to college and individual B does not.What does this imply?

Human capital includes all of the following except

What is the net return to Carolina's educational investment?

Suppose there is another worker in the economy,whose schooling and earnings are governed by w = 6.3 ln (1 + s).This worker will accumulate years of school and is of ability. Hint: in this case,MW(s)= 6.3/(1 + s)

Suppose at any given time 7 of 16 workers are unemployed.What is the unemployment rate?

Which of the following is not a great labor market institution involved in accumulating human capital?

If capital markets are imperfect,high borrowing costs the acquisition of human capital but the rate of return.

If the average earnings of high school and college students declines,then the number of people attending college will:

Which of the following would cause Brian to be willing to pay more to go to college?

An individual will choose the optimal amount of schooling so that the return to an additional year of school equals:

The future earnings of an individual at a rate.

If the returns to schooling do not equal the interest rate,then

What is the net return to Matt's educational investment?

If the net private return of return does not equal the social return to investment,then there exists a possibility for

Introduction

The Uslabor Market

The Short Run Demand for Labor

The Supply of Labor

On-The-Job Training

Competitive Equilibrium

Policy Application: the Minimum Wage

Policy Application: the War on Poverty

Death and Injury in the Usworkplace-A Hedonic Analysis

Discrimination I: Theory

Discrimination Ii: Evidence and Policy

The Hiring Process

Incentives

Tasks,technologies,and Organizational Design

Careers and the Employment Relation

The Long Run Demand for Labor and Adjustment Costs

Filters