Econ 480 quiz questions

In 2017, the percent of money income going to the top 5% of households was __________, while the bottom 60% received _________. A) 51%, 11.5% B) 22.3%, 51.0% C) 5%, 60% D) 22.3%, 25.6%

D

Between 1990 and 2010, which group did NOT experience growth in their share of the civilian labor force? A) women B) asians C) hispanics D) whites

D

A nation is more productive when A) it takes fewer jobs and resources to produce a given amount of goods. B) workers stay in their current job. C) more jobs are needed to produce any given level of output. D) consumers cannot change which goods they buy when this results in the loss of some jobs.

A

A worker who is laid off because his or her company chooses to move from Wisconsin to North Carolina is counted as ________ unemployment. A) structural B) cyclical C) frictional D) wait

A

Assume the demand for high tech goods is perfectly inelastic. If workers producing high tech goods become more productive, then these workers employment will ________ and their wages will ________. A) fall; fall B) fall; rise B) rise; rise C) rise; fall

A

Consider an individual who will invest a total of $10,000 in direct and indirect costs for training in order to increase earnings by $12,500 for the next year. Assume the interest rate is 8%. If this person plans to retire the following year, the net present value of this investment is: A) between $1500 and $2500 B) zero C) $2500 D) between $11,500 and $12500

A

Empirical studies of wage differentials between black men and white men estimate that A) 1/3 of the differential cannot be explained by differences in observable variables (including human capital measures). B) 3/4 of the differential cannot be explained by differences in observable variables (including human capital measures). C) 1/2 of the differential cannot be explained by differences in observable variables (including human capital measures). D) 1/10 of the differential cannot be explained by differences in observable variables (including human capital measures).

A

Employee benefits and the share of compensation that goes to benefits are usually A) higher in unionized than in nonunionized firms. B) lower in unionized than in nonunionized firms. C) impossible to compare between unionized and nonunionized firms due to insufficient data. D) roughly equal in unionized and nonunionized firms.

A

Human capital investment consists of: A) any activity that enhances the quality of labor B) expenditures for formal schooling only C) any activity that leads to the substitution of physical capital for labor D)expenditures for on-the-job training only

A

In a competitive industry, it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output. If the immigration of unskilled workers lowers the wage of unskilled workers, it will likely A) increase the demand for skilled workers due to the scale effect. B) All of the above will occur. C) decrease the wage but increase the employment of domestic unskilled workers. D) increase the demand for skilled workers due to the substitution effect.

A

In the asymmetric-information model of strike activity, employers who provide better information about their profitability to their employees A) should see a decrease in both frequency and duration of strikes. B) should see an increase in both frequency and duration of strikes. C) should see a decrease in frequency of strikes, but an increase in duration. D) should see an increase in frequency of strikes, but a decrease in duration.

A

Occupational discrimination A) is keeping one group in lower-paying jobs although their potential productivity is equal to that of those who have access to higher-paying jobs. B) is when the distribution of jobs within one group is different from the distribution of jobs within another group. C) occurs when secretaries are paid less than truck drivers. D) is the desire of those in one group to work in different jobs than those in another group.

A

Studies using local labor markets as units of observation estimate that the effects of immigration on native-born wages and employment are ________. This could be because A) minimal; immigrants choose to locate in areas where demand is expanding. B) large; internal migration by native-born workers is large. C) large; immigrants and native-born workers are gross substitutes. D) minimal; internal migration by native-born workers is minimal.

A

The Census Bureau reports income for households and for families. What's the difference? A) A family household includes two or more persons related by birth, adoption, or marriage. B) A family household includes only households with children under 18. C) A family household includes two or more persons living together as a family. D) A family household includes only married couple households with or without children.

A

The Gini index reported by the Census Bureau (using money income) in 2017 was A) 0.482 B) 0.586 C) 0.097 D) 1.74

A

The ________ Act established the National Labor Relations Board and required employers to bargain with unions representing the majority of their employees. A) National Labor Relations B) Taft-Hartley C) Norris-LaGuardia D) Landrum-Griffin

A

The broadest measure of unemployment used by the Bureau of Labor Statistics is U6 which A) Includes persons marginally attached to the labor force plus those employed part-time for economic reasons. B) includes the entire population - not just those over 16 years of age. C) Includes discouraged workers in addition to those officially classified as unemployed. D) surveys households to include as unemployed anyone who is unhappy with their current job.

A

Which of the following best explains why the most rapid increase in a person's wages usually occur at younger ages, giving a concave shape to the age/earnings profile? A) On-the-job training usually declines with age. B) People who have more human capital are more likely to acquire more on-the-job training. C) People with children cut back their hours of work. D) On-the-job training is free.

A

Which of the following household types had the highest real median income in 2017? A) Married couple households. B) Households maintained by men, no wife present. C) Households maintained by women, no husband present. D) Non-family households.

A

In the U.S., the unemployment insurance system in most states is generally designed to replace approximately what percentage of the unemployed person's previous earnings? A) 50% B) 90% C) 33% D) 15%

A)

All of the output of industry X is made in America. Suppose now that a foreign nation's workers can produce at least part of industry X's good at a lower wage. The reduction in American jobs in industry X will be smaller when A) American workers are excellent substitutes for foreign workers. B) the elasticity of supply of American workers is more inelastic. C) American workers, while getting a wage twice that of foreigners, are 50% more productive. D) the supply of labor supply is highly elastic.

B

An increase in his or her expected career length will make a worker A) less likely to change jobs. B) more likely to change jobs. C) either more or less likely to change jobs. D) exactly as likely to change jobs.

B

Experience rating is A) assigning a higher UI tax to employers who have a large number of inexperienced workers. B) assigning a higher UI tax to employers who lay off workers frequently. C) assigning a higher UI tax to employers who have not been in business for very long, because these businesses are likely to fail. D) assigning a higher UI tax to employers who have a large number of experienced workers.

B

Many college professors have tenure, which makes it very hard to fire them. What is the effect of tenure on the academic job market? A) It increases the professors' willingness to invest in teaching. B) It reduces the job mobility of tenured professors. C) It makes it more likely the wages of tenured professors will reflect their productivity D) It makes it more likely that professors will be well matched to the institutions they teach in.

B

Many unions have favored import quotas and tariffs because A) All of the above. B) they want to shift demand towards the goods they produce. C) they are trying to increase the welfare of all Americans. D) they want their employers to substitute labor for capital and other inputs.

B

Mary can take a class that costs $10,000. The class teaches her a skill that will only be useful during the second year after training. What must the minimum pay for the skill in the second year be for Mary to take the class? She could alternatively invest the $10,000 and earn an annual rate of return of 20%. A) $4000 B) $14400 C) $14,000 D) $4,400

B

Mr. X works in the warehouse of a large textile firm located in the United States. The firm outsources the production of its textiles to another nation. Which of the following is an example of the possible substitution effect of this event on Mr. X? A) Both of the above. B) The outsourcing of production reduces the company's demand for warehouse workers in the United States and increases its demand for warehouse workers in the other nation. C) The lower price of the textiles causes his firm to sell more textiles, increasing its demand for warehouse workers. D) Neither of the above.

B

The unemployment rate tells us A) the percentage of the population that is searching for work. B) the percentage of the labor force that is not working. C) the percentage of the labor force that has been laid off. D) the percentage of the population that is not working.

B

Threat effects are A) decreases in non-union wages from the threat of replacement by unemployed union members. B) increases in non-union wages from threats to unionize. C) increases in union wages from threats to strike. D) decreases in union wages from management threats to use replacement workers during a strike.

B

Imports of goods and services from foreign countries to the United States constituted ________ percent of all American purchases in 2012. A) 62 B) 37 C) 17 D) 5

C

In 2017, households in the top 5% had incomes of _____________or more. In contrast, households in the lowest quintile had incomes of ________or less. A) $85,449; $32,507 B) $112,263; $41,186 C) $237,035; $24,638 D) $68,212; $15,981

C

Sam has been unemployed for over 6 months and is considering moving from from Detroit, Michigan to Houston, Texas to look for a job. Which of the following is likely to increase the probability that Sam will make the move? A) Although the unemployment rate in Houston is lower than that of Detroit, Sam learns that the ratio of unemployed to job openings is also higher in Houston. B) Sam earned $18.00/hour on his last job, but the going rate for similar work in Texas is much less. C) Sam learns that U-Haul has lowered their rates for renting moving trucks. D) Sam has a promising job offer, but the new employer will only guarantee Sam six months of work.

C

Section 14B of the Taft-Hartley Act A) required compulsory arbitration of contracts. B) prohibited "yellow dog" contracts. C) permitted individual states to pass "right-to-work" laws. D) contained provisions to increase democracy within unions.

C

Suppose that the labor force participation of married males is 70% and their unemployment rate is 20%, then their employment rate A) is 50%. B) is 80%. C) is 56%. D) cannot be calculated without more information.

C

The wages of workers displaced by international trade will fall less when A) the substitution effect is larger. B) unemployment benefits are made less generous. C) the scale effect is larger. D) workers are close substitutes with foreign workers.

C

Workers with relatively high levels of natural ability are quite likely to attend college. This can cause ________ bias when estimating educational returns because ________. A) an upward; other benefits of college are ignored B) a downward; ability increases earnings C) an upward; ability increases earnings D) a downward; other benefits of college are ignored

C

A construction worker who is not working due to a snow storm would be counted as ________ unemployed. A) frictionally B) structurally C) cyclically D) seasonally

D

A prospective worker's reservation wage refers to: A) The highest possible wage they could receive in their most productive employment. B) A wage equal to the federally-mandated minimum wage. C) The additional pay required for a job that is inherently dangerous. D) The lowest wage he or she would accept to take a job.

D

A worker who has quit one job to have time to search for a similar position is counted as what type of unemployment? A) occupational B) cyclical C) regional D) frictional

D

Approximately what percentage of U.S. workers were union members in 2010? A) 31.6 B) 40.0 C) 5.8 D) 11.4

D

In one hour, Mr. X can produce 50 cans of tuna or 100 bags of potato chips. In one hour, Mr. Y can produce 20 cans of tuna or 30 bags of potato chips. Mr. ________ has the lower opportunity cost of producing cans of tuna and Mr. ________ has the lower opportunity cost of producing bags of potato chips. A) X; Y B) Y; Y C) X; X D) Y; X

D

Income published by the US Census Bureau in this report includes all of the following except: A) Wages and Salaries. B) Social Security payments. C) Child support and alimony payments D) Income from capital gains

D

John is trying to decide whether to go to college or to start working right out of high school. College as an investment is most likely justified when ________ is greater than the cost of going to college. A) the difference between the sum of lifetime earnings as a college graduate and the sum of lifetime earnings as a high school graduate B) the sum of lifetime earnings as a college graduate C) the present value of what John would earn as a college graduate D) the present value of the difference between what John would earn as a college graduate and what he would earn as a high school graduate

D

Mr. X works in the warehouse of a large textile firm located in the United States. The firm outsources the production of its textiles to another nation. Which of the following is an example of the possible scale effect of this event on Mr. X? A) The outsourcing of production causes the firm to reduce the company's demand for warehouse workers in the United States and increase its demand for warehouse workers in the other nation. B) Both of the above. C) Neither of the above. D) The lower price of the textiles causes his firm to sell more textiles, increasing its demand for warehouse workers.

D

Real median household income in the US in 2017 as reported by the US Census Bureau was A) $77,713 B) $33,321 C) $90,386 D) $61,372

D

The area under a Lorenz curve is 0.30. What is its Gini coefficient? A) 0.15 B) 0.30 C) 0.20 D) 0.40

D

Unionization rates in the United States are highest A) among women workers. B) among young workers. C) in the manufacturing sector. D) in the government sector.

D

When Canada and the United States moved to reduce tariffs, which of the following occurred? A) Canada's overall employment rate fell. B) Canadian workers displaced by U.S. trade found it difficult finding new jobs. C) All of the above D) Employment fell in the Canadian industries most directly competing with imports from the United States.

D

Arbitration is a noncoercive method of resolving a dispute between employer and union. T F

F

Harvard economist, Gregory Mankiw, and Princeton economist, Alan Blinder, are in complete agreement on the subject of offshore outsourcing. T F

F

Lana is a freelance computer consultant who earns $300 per day for her services. Larry is a handyman who could earn $15 per hour at the local hardware store. Lana needs her house painted. She can paint the house in 5 days. Larry could paint Lana's house in 3 days time (8 hours per day). In this case, Lana has a comparative advantage in painting her own house. T F

F

Of the countries listed in Table 13.1 in your text, the one with the lowest rate of union membership is the United States. T F

F

Other factors held constant, middle aged workers (ages 35-44) are more likely to migrate than workers in other age categories. T F

F

Quit rates tend to increase with firm size. T F

F

The G.I. Bill had no measurable impact on the college attendance or college completion rates of World War II veterans. T F

F

The natural rate of unemployment is easily measured, and economists generally agree on its definition. T F

F

College enrollment rates of female high school graduates have been higher than those of male high school graduates since 1980. TF

T

Income published by the US Census Bureau does not include the value of "in-kind" benefits. T F

T

Research shows that a 10 percent increase in a region's unemployment rate is associated with a reduced wage level of between 0.4 and 1.9 percent. T F

T