question

Unemployment arising from a mismatch between the skills desired by firms and the skills offered by workers is called: a) frictional unemployment (b)structural unemployment. (c) demand deficient unemployment. (d) seasonal unemployment

answer

B) structural unemployment

question

A decrease in the number of job vacancies and increase in the number of unemployed persons is a sign of greater: A) frictional unemployment B) structural unemployment C) cyclical unemployment D) either fircitonal or structural unemployment

answer

C) cyclical unemployment

question

Which of the folllowing will lead to a decrease in the average length of job search: a) a recession b) a great number of women in the labor force c) an increase in the maximum number of weeks of unemployment compensation benefits. d) none of the above

answer

D) none of the above

question

Which of the following is not a feature of the Unemployment Insurance (UI) program? a) a person must have had previous earnings in covered employment. b) the experience rating feature of the program gives higher benefits to workers with more years of experience c) the replacement rate average 40-70 percent, but can exceed 100 percent in some cases. d)recipients must register for work or show proof of job seeking activity to qualify for benefits

answer

b) the experience rating feature of the program gives higher benefits to workers with more years of experience

question

An increase in the wage rate: a)causes parallel rightward shift in the budget constraint b) rotate the budge constraint to the right c) causes a movement up a give indifference curve. d) causes a movement up a given budget constraint

answer

b) rotate the budge constraint to the right

question

Equilibrium hours of work for an individual occurs: a) at the point on the budget constraint where the wage equals the marginal rate of substitution b) where the marginal rate of substitution is maximized. c) on the highest indifference curve. d) at the point on an indifference curve where the additional utility of working one more hour is zero .

answer

a) at the point on the budget constraint where the wage equals the marginal rate of substitution

question

Assuming leisure is a normal good, a decrease in non-labor income will cause: a) a reduction in work hours b) an increase in work hours c) no change in work hours d) the change in work hours depends on the relative size of the income and substitution effects.

answer

b) an increase in work hours

question

If the income effect is larger than the substitution effect: a) a person will work zero hours b) the labor supply curve will be positively sloped. c) whether a person works more or less in response to a wage increase cannot be predicted d) the labor supply curve will be negatively sloped.

answer

d) the labor supply curve will be negatively sloped.

question

A person will choose not to participate in the labor force when

answer

c) the market wage is less than the reservation wage.

question

IF the supply college graduates is greater than the demand, the human capital model predicts:

answer

d) all of the above

question

Two people make the same dollar expenditure on human capital investment. This implies:

answer

d) none of the above

question

The upward sloping portion of the average worker's age-earnings profile can be explained as arising from:

answer

d) all of the above

question

Human capital theory predicts that women who plan on interrupting their work career will:

answer

c) be given less specific OJT by firms that women who do not

question

Which of the following factors causes the officially defined unemployment rate to overstate the economic costs resulting from unemployment?

answer

c) certain income transfer programs require that recipients register for work.

question

A person who misses work due to illness is classified as

answer

b) employed.

question

The long-term nature of the employment relationship

answer

b) reduces the sensitivity of wage rates to changes in demand and supply

question

The long-term nature of the employment relationship:

answer

b) reduces the sensitivity of wage rates to change in demand and supply

question

Graphically, the reservation wage is shown by:

answer

c) the slope of an indifference curve where hours of work are zero

question

Which of the following is an example of the failure of the market to achieve economic efficiency?>

answer

B) dean would benefit from moving to a job in vegas but he cannot borrow the money to finance the move

question

A regression of w= a+bX, where w is wages and X is hours worked per week yielded a t-statistic of .75 for b. This implies:

answer

c) hours worked are probably not related to wages

question

Multiple regression analysis uses:

answer

b) several independent variables

question

A regression estimates that q= 35- .1X, where q is the quit rate and X is the number of employees at the firm. Both t-statistics are greater than 2. This indicates that doubling the number of employeees from 500 to 100 will reduce the quit rate by:

answer

b) 5 percentage points

question

If leisure is a normal good then an increase in non-labor income will cause desired hours of work to:

answer

a) decrease

question

Through the substitution effect, a decrease in the wage rate will cause ______ in the quantity of leisure desired.

answer

a) an increase

question

If Alice' wage increase from 6.00 to 6.50 per hour, then

answer

d) she may want to work either more or fewer hours than before her raise.

question

If Gene receives a raise and then decides he would like to increase his hours of work, we know that:

answer

b) his substitution effect is greater than his income effect.

question

On the portion of a worker's labor supply curve that is backward bending:

answer

b) the income effect outweighs the substitution effect.

question

If a worker's desired hours of labor do not change after a wage decrease, then:

answer

c) the income and substitution effects are of equal magnitude

question

Present- oriented people discount future earnings _______ forward-looking people.

answer

b) at a higher rate than

question

Nina would be more likely to obtain a college education if:

answer

a) her discount rate was lower.

question

Workers with relatively high levels of natural ability are quite likely to attend college. This can cause _____ bias when estimating educational returns because______.

answer

a) an upward; ability increase earnings

question

The psychic costs of college are usually lowest for:

answer

a) students with relatively high ability

question

An increase in an individual's reservation wage:

answer

d) will increase both the individual's duration of unemployment and expected wage.

question

The existence of generous unemployment insurance will probably:

answer

c) improve job matches

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