Final Exam

Federal antidiscrimination programs appear to a. have helped to raise relative earnings of black workers. b. have made little difference raising relative earnings of black workers, probably because individual programs have had only small effects. c. have hurt the relative earnings of black workers. d. have made no difference in raising relative earnings of black workers

a. have helped to raise relative earnings of black workers.

The Equal Pay Act of 1963 a. outlawed separate pay scales for men and women who perform the same jobs. b. outlawed sexual discrimination in hiring of workers. c. outlawed sexual discrimination in firing of workers. d. outlawed racial discrimination in hiring of workers.

a. outlawed separate pay scales for men and women who perform the same jobs

If attitudes change and unions are perceived as dangerous to American companies' ability to complete in the world market, then a. the demand curve for union services will shift to the left. b. we will move to the left along the demand curve for union services. c. the demand curve for union services will shift to the right. d. we will move to the right along the demand curve for union services.

a. the demand curve for union services will shift to the left

for an individual, which of the following factors would tend to make investment in a college more attractive

an increase in the age at which people retire

if unskilled and skilled workers are gross complements, then an increase in immigration and a corresponding decrease in wages paid to unskilled workers will cause

an increase in the employment of skilled workers

quasi fixed costs of labor are costs that

are proportional to the number of workers hired

workers who are present oriented discount future earnings ____ forward looking workers

at a higher rate than

In 2000 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 a. equal to; equal to b. greater than; less than c. equal to; less than d. greater than; equal to

b. greater than; less than

Unionization rates in the United States are highest a. in the manufacturing sector. b. in the government sector. c. among white workers. d. among young workers.

b. in the government sector.

The potential gains to a union in terms of wages and employment will be greatest if the firm's demand for labor is a. horizontal. b. inelastic. c. of unit elasticity. d. elastic.

b. inelastic.

The relative union wage advantage is generally a. about 50% in the United States. b. larger during recessions. c. smaller in the United States than in Europe. d. larger in the public sector than in the private sector.

b. larger during recessions.

The female-male wage ratio in the United States is generally ________________ than in other industrialized countries, probably because __________________ a. higher; in the United States womens productive characteristics are closer to those of men. b. lower; pay gaps between high- and low-paid workers are wider in the United States. c. higher; American women face relatively less discrimination. d. lower; American women face relatively more discrimination.

b. lower; pay gaps between high- and low-paid workers are wider in the United States.

indifference curves drawn with leisure and income on the axes have negative slopes

because people are willing to give up income to obtain more leisure and vice versa

an employee who receives time and a half overtime for working more than 8 hours per day will have a ____ which is ____ beyond 8 hours of labor

budget constraint; steeper

The _______________ Act established the National Labor Relations Board and required employers to bargain with the union that represents the majority of their employees. a. Norris-LaGuardia b. Taft-Hartley c. Wagner or National Labor Relations Act d. Landrum-Griffin

c. Wagner or National Labor Relations Act

Union membership in the United States is currently _____________ than in other industrialized countries and has _____________ in recent years a. higher; risen b. lower; risen c. lower; fallen d. higher; fallen

c. lower; fallen

Employer discrimination implies that a. co-workers and customers prefer one group of workers over another. b. if the group discriminated against is small, there will be a wage differential in the market. c. some employers give up profits to avoid hiring one group. d. there will be no market wage differential.

c. some employers give up profits to avoid hiring one group

suppose the government passes a law to increase the overtime premium from time and a half to double time. for a business, this mandated increase in overtime pay (for work beyond 40 hours a week) is likely to

cause an increase in the average costs of labor, even if all overtime hours were eliminated

Between 1990 and 2010, which group did NOT experience growth in their share of the civilian labor force? a. Hispanics b. Blacks/African-Americans c. Asians and Native Americans d. White males

d. White males

when a company has to pay higher wages to its workers, the scale effect implies that employment will _____ and the substitution effect implies that employment will _____

decrease; decrease

for a business firm, the present value of their revenue over two periods is equal to their revenue in the initial period plus the _____ value of their revenue in the next period, and this will ____ as the interest rate rises

discounted; fall

if the number of truck drivers hired by the US Post office decreases from 264,000 to 216,000 when the equilibrium wage increases from 19 per hour to 21 per hour, then the own wage elasticity of demand for these truck drivers is

elastic

suppose the government subsidizes part of the hourly costs of child care. this will

encourage work among those mothers currently out of the labor force

for the US, the amount of international migration

has historically been a major source of labor force and population growth

when a firm has a steeply sloped isoprofit curve (with wages on the vertical axis and risk of injury on the horizontal axis) this indicates that

it would be quite expensive to increase safety in the workplace

when a worker has a decrease in his or her expected career length, this will make the worker

less likely to change jobs

workers with firm specific training are ____ likely to be laid off than are workers with general training because ____

less; their wage is less than their marginal product

for an individual worker, a decrease in their discount rate would make them

more likely to change jobs

am increase in the employee's expected career length will make that employee

more likely to invest in human capital

according to hardy, the view of work of the greeks could be described as

physical work should be avoided whenever possible

there are 100 jobs in a town and 100 workers. 40 of the jobs are risky, 60 are safe. workers have the following preferences: worker one dislikes risk by $1 worker two dislikes risky by $2 worker three dislikes risk by $3 and so forth. assume workers are mobile and well informed and the labor market is mobile. also assume that safe jobs pay 380 a week. which of the following statements will be true.

risky jobs will pay 420 a week

a company pays a wage of 220 per day, the price of the product they sell is 55. in the short run, this company should

should add workers if they add 4 more units of output

an individual with ____ indifference curves is most likely to decide to participate in the labor force

steeply sloped

if a manager at a company is able to calculate the marginal product of labor, the manager knows

the additional output produced by the last worker hired

in the hedonic model, along an isoprofit curve, if a company chooses to reduce the risk in its workplace, then

the company will pay lower wages

if a company hires to a point where the marginal cost of labor is greater than the marginal revenue product of labor, then

the company's profits could be increased by reducing employment

according to lee hardy

the current catholic position on work and labor is quite similar to that of the reformers luther and calvin

on a company's isoprofit curve

the difference between total revenues and total costs is constant

which of the following events will likely lead to a firm to use overtime rather than hire new workers?

the firm starts to pay for health insurance

an architect declared "with the recent increase in the value of my stock portfolio, I will be able to retire two years earlier" this decision refelcts

the income effect

of the following items, which is not a costs of acquiring human capital

cost of room and board while attending school

the marginal product of a new worker is 20 units and the marginal cost of a new worker is $200. the marginal product of hiring current workers for another hour is 10 units and the marginal cost of paying current workers for another hour is $20. if the firm needs additional production (and assuming the work could be done by either the new or current workers) it should

hire new workers

marilyn earns $20 an hour and works 10 hours a week. she gets a raise to $30 an hour but at the same timer her fixed weekly work expenses go up $100. if she continues to work, she will most likely

increase her hours of work

if industry A can substitute capital for labor easily and industry Z cannot, then other things equal

industry A's own wage elasticity of labor demand will be more elastic than industry Z's

the opportunity cost of leisure

is the wage that one could earn by working an additional hour

consider a company that is very small compared to the size of the overall labor market, if the company's demand for custodians increase then

it wage rate will remain the same and its employment level will increase

when a person's indifference curves are drawn for wage rates versus injury risk

the indifference curves slope upwards because a higher wage is required to accept a higher risk of injury

if there is an increase in the number of immigrants, this will cause

the labor supply curve to shift to the right

we would predict that an individual would be more likely to be mbile when

the present value of the benefits from mobility is at least as large as the present value of the costs

suppose that otherwise comparable employees are paid an extra 3.50 per hour to work outdoors. this means that

the value of indoor work is worth at least 3.50 per hour to some employees

at amazon, unskilled warehouse workers and robots are substitutes in production. if the scale effect dominates the substitution effect

then these two inputs are gross complements

suppose that an employee doesn't fully know about the level of injury risk that is associated with a particular job. in that case, a a mandatory risk reduction instituted by the government for that job

will make the employee better off if the employee's willingness to pay for the risk reduction is greater than the cost to the firms of providing it

the auto workers at Ford negotiated a wage increase of 12 percent, and subsequently the employment of these workers decreased 18 percent. therefore the own wage elasticity of labor demand for these workers is

-1.5

if the wages of retail workers decrease and other conditions remain the same, then

a company will move to the right along its labor demand curve for retail workers

for a company with an inelastic demand curve for labor

a fall in the wage will cause a decrease in the wage bill

other things equal, which of the following will have the most elastic own wage elasticity of labor demand

a steel firm with one plant in california