Labor ECON EXAM 3 (Study Guide Direct Questions & Quiz Questions) Multiple Choice Part
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When workers' indifference curves are drawn for wage rates versus injury risk:
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the indifference curve slopes upward
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Compensating Wage Differential:
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An extra wage that compensates workers for undesirable working conditions.
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Women generally receive______ on-the-job training than men, causing their age-earnings profiles to be _______ than those of men.
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Less, flatter
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Increased grants for college expenses would _______ the number of college graduates, while _____ wages paid to college graduates (ceteris paribus)
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Increasing, decreasing
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Since 1980, the college enrollment rate of both male and female recent high school graduates has ______, while the ratio of earnings of college to high-school graduates has ______.
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Increased, Increased
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Mary can take a class that costs $20,000. The class teaches her a skill that will only be useful in two years from now (and has no use after that year). What must the minimum pay for the skill in two years for Mary to take the class? She could alternatively invest the $20,000 and earn an annual rate of return of 10%.
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20,000(1+.10)^2= 24,200
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Assuming that the discount rate is 5%, what is the present value of $1000 received 3 years from?
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1000/(1+.05)= 952.38/1.05=907.02/1.05= 863.84
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OSHA standards that decrease risk levels in the work place:
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can in some cases increase the utility level of workers and in other cases decrease their utility.
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According to the human capital model, individuals are more likely to invest in college if:
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The individuals are more future oriented
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On a graph of wage rates versus risk of injury, indifference curves are convex because:
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At high levels of risk, a worker more willing to give up wages for increased safety than at a lower level of risk
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Fewer women leaving the labor market to raise children has given women the incentive to acquire _____ on-the-job training early in their careers, yielding age-earnings profiles which are ________ than they were about twenty years ago.
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more; steeper
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Lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers. This is because:
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Lawyers and Construction workers are not comparable due to education level
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Firm A's isoprofit curves are flatter than those of firm B. Therefore
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Firm B will be willing to pay higher wages at higher risk levels than firm A.
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_______ Will increase the likelihood that a person will go to college.
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A decrease in the earnings of high school graduates.
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For workers who emigrate to the United States from a country with a less equal distribution of earnings:
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The largest potential gain exists for unskilled workers.
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In the mid-1990's the labor force participation rate of black women was ______ the rate of white women, while the rate for black men was ______ the rate of white men.
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Greater than. less than
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The Equal pay act of 1963:
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outlawed separate pay scales for men and women who perform the same jobs.
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What has happened to the relative earnings of a college graduate, compared to a non-college graduate over the last few decades:
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It has increased while college attendance has risen
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The College Educated Labor supply and demand have both :
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increased at different rates
