Question 1

In order to clearly pass a cost-benefit test, a training program must

Accepted Answer

A)  Provide net benefits to both the trainees and society as a whole
B)  Provide net benefits to society as a whole
C)  Be more cost-efficient than current programs
D)  Provide net benefits to the trainees A

Question 2

The president most associated with job training and the War on Poverty is

Accepted Answer

A)  Lyndon Johnson
B)  John F.Kennedy
C)  Ronald Reagan
D)  Bill Clinton A

Question 3

Which of the following is definitely not found in research about the minimum wage?

Accepted Answer

A)  A decrease in employment is possible
B)  A decrease in poverty is likely
C)  A decrease in the average wage is likely
D)  An increase in employment is possible C

Question 4

Training can have all of the following market imperfections EXCEPT

Accepted Answer

A)  The creation or enhancement of heterogeneous labor
B)  imperfect information about training program quality
C)  problems with ownership of the benefits of training
D)  a lack of certification standards for skills.
E)  None, all of the above are possible imperfections

Question 5

Under a monopsony model a well-placed minimum wage will

Accepted Answer

A)  Decrease employment
B)  Increase employment but decrease earnings
C)  increase employment and earnings
D)  create unemployment

Question 6

The largest federal training program as of 2012 was

Accepted Answer

A)  The Job Corps
B)  The Workforce Investment Act
C)  AmeriCorps/Vista
D)  Supplimentary Security Income

Question 7

The basic categories of job skills in human capital theory are

Accepted Answer

A)  Productive skills and unproductive skills
B)  Capital-related skills and human-related skills
C)  General skills, occupational skills, and firm-specific skills
D)  Work skills, athletic skills, and social skills

Question 8

If a minimum wage covers only part of a labor market with inelastic demand

Accepted Answer

A)  Workers in the covered market will have higher wages but lower earnings
B)  Workers in the uncovered sector will have lower wages and lower earnings
C)  Employment will fall in the uncovered market
D)  All of the above
E)  None of the above

Question 9

Developed nations deal with labor market imperfections involving training by

Accepted Answer

A)  Taxing firms that don't train
B)  Fund national apprenticeship programs
C)  Practicing job training and job rotation during slack periods
D)  a, b, and c
E)  a and b only

Exam 15: Policies for the Working Poor: Training, Worker Subsidies and the Minimum Wage