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Assignment 13

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Question 1 (1 point)
Which of the following is a true statement about leisure?
  1. Leisure includes all hours that a person spends away from a paying job, regardless of how this time is spent.
  2. When a person's salary increases, it often becomes possible to increase both labor and leisure.
  3. If someone enjoys his or her job, then the time he or she spends at work is considered leisure.
  4. Standing in line at the bank is not enjoyable and as a result is not considered leisure.
  5. Leisure will always decrease as a person's wage increases.
Question 2 (1 point)
Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?
  1. Some people do not work at all, so there is no labor-leisure tradeoff to study.
  2. Since wages are paid in dollars and leisure is measured in time, there is no way to compare the two.
  3. High-paying jobs are often considered more enjoyable.
  4. On a day-to-day basis, most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day.
  5. People have to pay taxes on their wages, so they don't really receive their entire wage.
Question 3 (1 point)
The fact that the market labor supply curve is upward sloping at all wage rates illustrates that
  1. the marginal benefits of leisure decrease as wages increase.
  2. all people supply more labor as the wage rate increases.
  3. individual labor supply curves, since they are backward bending, have nothing to do with the aggregate labor market supply.
  4. the combined effect of individual labor supply curves results in a greater number of labor hours being supplied at a higher wage rate.
  5. at high wages, people will decrease labor supply when wages rise further, and as a result make aggregate labor supply decrease.
Question 4 (1 point)
Labor Market
In the figure above, assume the labor market is at equilibrium with 30 workers and a wage rate of $5 per day. Then the government imposes a minimum wage of $10 per day. Which of the following is true?
  1. Labor demand will decrease.
  2. The economy will remain in equilibrium.
  3. There will be a surplus of 20 workers.
  4. Labor supply will increase.
  5. There will be a shortage of 20 workers.
Question 5 (1 point)
Labor Market
In the figure above, which of the following could cause a shift from S 1 to S 2 ?
  1. A government policy that restricts wages to $5 per day
  2. An increase in the demand for labor
  3. A change in preferences such that people increase their desire for leisure
  4. An increase in the wage rate
  5. An increase in the population
Question 6 (1 point)
Wage Differential
In the figure above, the reason for the wage differential could be the fact that
  1. market B consists of workers with less human capital.
  2. market B is unskilled labor.
  3. market A consists of workers with more human capital.
  4. market A is the market for a risky occupation.
  5. All of these.
Question 7 (1 point)
A compensating wage differential is a wage difference
  1. that results because of a monopsony.
  2. that makes up for the high risk or poor working conditions of a job.
  3. that leads to more risks taken on the job.
  4. attributable to different demands for labor.
  5. due to discrimination.
Question 8 (1 point)
Human capital refers to
  1. on-the-job training only.
  2. formal education only.
  3. the machinery that requires people to operate.
  4. the skills, training, and personal health acquired through education and job experience.
  5. the benefits a person gets out of attending college.
Question 9 (1 point)
From an economist's viewpoint, discrimination occurs if there is a wage differential between two groups when there is no difference in the __________ of the two groups.
  1. marginal-revenue products
  2. marginal costs
  3. gender
  4. race
  5. marginal benefits
Question 10 (1 point)
Which of the following statements is true?
  1. Discrimination seems to be a worldwide occurrence that differs greatly among nations.
  2. Discrimination is a labor market issue only in North America. In Europe, for example, there are no known wage differences between any identifiable groups.
  3. Even if there is discrimination, laborers are still paid their marginal revenue product.
  4. Women are discriminated against equally worldwide. In every country in the world, a woman makes 60 percent of the wages a man makes doing an identical job.
  5. Union members in the United States generally get paid much less than nonunion workers working in the same job.
Question 11 (1 point)
If worker prejudice exists,
  1. the firm must be a monopsonist.
  2. firms cannot be maximizing profits.
  3. the labor market must be perfectly competitive.
  4. it can be costly to the workers who discriminate.
  5. the firm must be a monopoly.
Question 12 (1 point)
Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural students. The colleges decide to admit only students applying from rural areas. This policy could be referred to as
  1. consumer prejudice.
  2. employee discrimination.
  3. statistical discrimination.
  4. employer discrimination.
  5. productivity bias.
Question 13 (1 point)
For economists, discrimination is difficult to rationalize because
  1. it is costly to discriminate.
  2. it is not costly to discriminate.
  3. economists know that in the real world, personal prejudices do not exist.
  4. in a freely functioning labor market, there is no such thing as discrimination.
  5. wages will not be allowed to fall below their natural equilibrium rate.
Question 14 (1 point)
Which of the following can result in occupational crowding?
  1. Statistical discrimination and imperfect information
  2. Statistical discrimination
  3. Urban areas
  4. Competitive labor markets
  5. Imperfect information
Question 15 (1 point)
When the labor market is separated into categories such as "men's jobs" and "women's jobs," this separation is referred to by economists as
  1. a labor market aberration.
  2. occupational hazards.
  3. rational behavior.
  4. a labor market shortage.
  5. occupational segregation.
Question 16 (1 point)
Which of the following is not correct?
  1. Some people believe that CEO pay is too high because shareholders in most corporations have little day-to-day influence.
  2. CEOs commonly receive salaries and bonuses far in excess of the next person in charge.
  3. It is possible that high CEO pay packages are efficient for the firm.
  4. Some economists argue that the market for CEOs has failed.
  5. CEO salaries, although sometimes large, are almost always exactly the same as the next person in charge.
Question 17 (1 point)
Which of the following best describes the superstar effect?
  1. The situation where people with large differences in abilities receive vastly different levels of compensation
  2. The effect that a superstar has on people that allows him/her to exploit employers
  3. The situation where people are paid a wage above their marginal revenue product simply because they are one of the best in their field.
  4. The result of many people having very poor skills in an industry
  5. The situation where people with small differences in abilities receive vastly different levels of compensation
Question 18 (1 point)
Disparate treatment refers to
  1. different hiring practices on the part of firms of different sizes.
  2. different hiring practices on the part of different firms.
  3. the treatment of individuals on the basis of their race, sex, color, religion, or national origin.
  4. the treatment of firms by unions.
  5. the impact of individuals on the basis of their race, sex, color, religion, or national origin.
Question 19 (1 point)
The concept of comparable worth
  1. is that pay ought to be determined by job characteristics rather than by supply and demand.
  2. is easy to implement once a new worker has been hired.
  3. is that pay ought to be determined by supply and demand rather than by job characteristics.
  4. asserts that market-determined wages are the only appropriate way in which to allocate pay.
  5. has made hiring practices much simpler for employers.
Question 20 (1 point)
Opponents of comparable worth argue that
  1. wage rates will be too high.
  2. steelworkers and secretaries should always be paid the same wage rate.
  3. interference with the functioning of the labor market will lead to shortages in some markets and surpluses in others.
  4. defining wages according to job characteristics is the only way to eliminate wage gaps.
  5. wage rates will be too low.
Question 1 (5.00 points)
What is human capital? How does a training program such as Mrs. Fields Cookie College affect human capital? Is a college degree considered to be human capital?
Question 2 (5.00 points)
Why are women's wages only 60 to 80 percent of men's wages, and why has this situation existed for several decades? Now that women are entering college and professional schools in increasing numbers, why doesn�t the wage differential disappear?
Copyright 2008, by the Contributing Authors. Cite/attribute Resource . admin. (2009, January 27). Assignment 13. Retrieved January 07, 2011, from Free Online Course Materials — USU OpenCourseWare Web site: http://ocw.usu.edu/economics/introduction-to-microeconomics-1/assignment13.htm. This work is licensed under a Creative Commons License Creative Commons License