Question 1

In part labor economics concerns:

Accepted Answer

A) How labor markets work. 
B) The study of education decisions. 
C) The study of how households decide where to live. 
D) The study of income inequality. 
E) All of the above. 
A) How labor markets work. 
B) The study of education decisions. 
C) The study of how households decide where to live. 
D) The study of income inequality. 
E) All of the above.

Question 2

Which of the following is a positive (rather than a normative) question?

Accepted Answer

A) What effect does increasing welfare assistance by 20% have on female labor supply? 
B) Should the U.S.allow unlimited immigration? 
C) Should the "Highly Qualified Teacher" provision of No Child Left Behind be eliminated? 
D) Should there be a minimum wage? 
E) Should trade unions be allowed to lobby Congress? 
A) What effect does increasing welfare assistance by 20% have on female labor supply? 
B) Should the U.S.allow unlimited immigration? 
C) Should the "Highly Qualified Teacher" provision of No Child Left Behind be eliminated? 
D) Should there be a minimum wage? 
E) Should trade unions be allowed to lobby Congress?

Question 3

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Accepted Answer

A) The supply of firemen will fall because there will be fewer fires. 
B) The supply of firemen will increase because there will be fewer fires. 
C) The supply of firemen will remain unchanged because the supply curve relates the number of fire fighters to the wage, not to the number of fires. 
D) The supply of firemen will increase as long as wages paid to workers on new construction projects is also increasing. 
E) The supply of firemen will decrease as long as the property tax-base increases when the new construction projects are completed. 
A) The supply of firemen will fall because there will be fewer fires. 
B) The supply of firemen will increase because there will be fewer fires. 
C) The supply of firemen will remain unchanged because the supply curve relates the number of fire fighters to the wage, not to the number of fires. 
D) The supply of firemen will increase as long as wages paid to workers on new construction projects is also increasing. 
E) The supply of firemen will decrease as long as the property tax-base increases when the new construction projects are completed.

Question 4

In an econometric model, the dependent variable is

Accepted Answer

A) the behavior one is trying to explain. 
B) unchanging across sub-samples. 
C) always the wage. 
D) also known as the residual. 
E) unrelated to the independent variables. 
A) the behavior one is trying to explain. 
B) unchanging across sub-samples. 
C) always the wage. 
D) also known as the residual. 
E) unrelated to the independent variables.

Question 5

The typical labor supply curve

Accepted Answer

A) is u-shaped. 
B) equals the marginal product of labor. 
C) slopes up. 
D) slopes down. 
E) depends on the size of the firm. 
A) is u-shaped. 
B) equals the marginal product of labor. 
C) slopes up. 
D) slopes down. 
E) depends on the size of the firm.

Question 6

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Accepted Answer

A) The demand for firemen will fall as the demand for fire protection services falls. 
B) The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. 
C) The demand for firemen will remain unchanged as firemen don't build new construction. 
D) The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. 
E) The demand for firemen will decrease as long as the property tax-base increases when the new construction projects are completed. 
A) The demand for firemen will fall as the demand for fire protection services falls. 
B) The demand for firemen will increase as the supply of firemen falls when old buildings are replaced with newer buildings. 
C) The demand for firemen will remain unchanged as firemen don't build new construction. 
D) The demand for firemen will increase as long as wages paid to workers on new construction projects exceed the minimum wage. 
E) The demand for firemen will decrease as long as the property tax-base increases when the new construction projects are completed.

Question 7

Which of the following affects the wage a firm is willing to pay its workers?

Accepted Answer

A) The productivity of workers. 
B) Consumer demand for the goods and/or services that the firm creates. 
C) The amount of fringe benefits the firm is required by law to pay. 
D) The level of payroll taxes the firm must pay. 
E) All of the above affect the wage a firm is willing to pay its workers. 
A) The productivity of workers. 
B) Consumer demand for the goods and/or services that the firm creates. 
C) The amount of fringe benefits the firm is required by law to pay. 
D) The level of payroll taxes the firm must pay. 
E) All of the above affect the wage a firm is willing to pay its workers.

Question 8

Which of the following is a normative (rather than a positive) statement?

Accepted Answer

A) The (nominal) minimum wage is $7.25 per hour. 
B) Public education should be funded primarily at the state level. 
C) The federal debt exceeds $8 trillion. 
D) At its peak, unemployment exceeded 10% during the 2007 recession. 
E) The average wage of high-school dropouts has fallen by 20% since 1970. 
A) The (nominal) minimum wage is $7.25 per hour. 
B) Public education should be funded primarily at the state level. 
C) The federal debt exceeds $8 trillion. 
D) At its peak, unemployment exceeded 10% during the 2007 recession. 
E) The average wage of high-school dropouts has fallen by 20% since 1970.

Question 9

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.How many workers are willing to work when the yearly salary is $20,000?

Accepted Answer

A) 100 
B) 200 
C) 500 
D) 1,000 
E) 2,000 
A) 100 
B) 200 
C) 500 
D) 1,000 
E) 2,000

Question 10

Which of the following is not a leading actor in labor markets?

Accepted Answer

A) Consumers 
B) Firms 
C) Workers 
D) Government 
E) Unions 
A) Consumers 
B) Firms 
C) Workers 
D) Government 
E) Unions

In part labor economics concerns:

Which of the following is a positive (rather than a normative) question?

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

In an econometric model, the dependent variable is

The typical labor supply curve

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Which of the following affects the wage a firm is willing to pay its workers?

Which of the following is a normative (rather than a positive) statement?

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.How many workers are willing to work when the yearly salary is $20,000?

Which of the following is not a leading actor in labor markets?

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Exam 1: Introduction to Labor Economics

In part labor economics concerns:

Which of the following is a positive (rather than a normative) question?

What is likely to happen to the supply of firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

In an econometric model, the dependent variable is

The typical labor supply curve

What is likely to happen to the demand for firemen as building codes change to require firewalls and sprinklers to be included in all new construction?

Which of the following affects the wage a firm is willing to pay its workers?

Which of the following is a normative (rather than a positive) statement?

Suppose labor supply can be described as ES = 0.1w - 1,000 where w is yearly salary.How many workers are willing to work when the yearly salary is $20,000?

Which of the following is not a leading actor in labor markets?

Labor Supply

Labor Demand

Labor Market Equilibrium

Compensating Wage Differentials

Human Capital

The Wage Structure

Labor Mobility

Labor Market Discrimination

Labor Unions

Incentive Pay

Unemployment

Filters

Suppose labor supply can be described as E_S = 0.1w - 1,000 where w is yearly salary.How many workers are willing to work when the yearly salary is $20,000?