Deck 1: Labour Force Participation

Question 1

Private rates of return to education exceed social rates of return because

A) Social returns do not include the impact of education on economic growth and social cohesion
B) Private returns take into account the higher taxes paid by the more educated
C) Social returns include negative externalities
D) Private returns do not take into account the share of education costs borne by the taxpayer.

Answer 1

D

Question 2

Family background influences the amount of education received because

A) Capital markets are imperfect
B) Nepotism affects occupational choice
C) More educated parents produce children with higher IQs on average
D) Regression to the mean is absent.

Answer 2

A ,B, C

Question 3

The cobweb model is

A) Is relevant in the case of any occupation
B) Is dependent for the attainment of equilibrium on stable, highly damped fluctuations
C) Is dependent for the attainment of equilibrium on the supply elasticity being greater than the demand elasticity
D) Is important in occupations in which shortages cannot be immediately rectified.

Answer 3

B

Question 4

The rate of return to education is higher for women than for men because

A) Women self select into higher paying occupations
B) Women are more productive than men , controlling for occupation
C) Women's earnings in the female comparator group are lower than those in the male comparator group.
D) There is discrimination against men.

Question 5

Labour force participation rates vary across countries because of

A) Different social and cultural norms
B) Differences in unemployment benefit systems
C) Definitional differences
D) Demographic differences in populations.

Question 6

Men are more likely to become self employed than women because

A) Women are discriminated against
B) Women are more risk averse than men
C) Women find it more difficult to accumulate financial assets
D) Women are less likely to take up self employment when they lose their jobs.

Question 7

The additional worker hypothesis

A) Suggests that labour force participation will increase as economic activity declines
B) Rests on the supposition that married women join the labour force to offset the reduced income of their husbands
C) States that more people will work in boom periods
D) Depends on the notion that single women are secondary workers.

Question 8

Lazear explains mandatory retirement as being the result of

A) Pay back-loading
B) Productivity declining with age
C) The increasing cost of private pension schemes
D) The attempt by employers to choose a pay profile which maximises effort.