Question 1

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

Accepted Answer

Research shows that an increase in the minimum wage can lead to a decrease in employment and an increase in prices, but it is likely to decrease poverty and increase the overall wage level. Therefore, choice C, which suggests a decrease in the average wage, is not supported by research.

Question 2

Under a monopsony model a well-placed minimum wage will
A)Decrease employment
B)Increase employment but decrease earnings
C)increase employment and earnings
D)create unemployment

Accepted Answer

In a monopsony model, where there is only one buyer (employer) in the labor market, a well-placed minimum wage can increase both employment and earnings. This is because the monopsonist's power to set wages below competitive levels is limited by the minimum wage, leading to higher wages for workers and potentially encouraging the employer to hire more workers to meet their labor needs.

Question 3

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

Accepted Answer

A training program should provide net benefits to both the trainees and society as a whole to pass a cost-benefit test. It is important to consider the impact of the training program not only on the individual trainees but also on the larger community in terms of increased productivity, economic growth, and social welfare. Only measuring the net benefits for trainees or society as a whole would not provide a comprehensive picture of the program's effectiveness. Additionally, cost-efficiency is important but should not be the sole factor considered in a cost-benefit analysis.

Question 4

The basic categories of job skills in human capital theory are
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

Accepted Answer

Human capital theory suggests that job skills can be categorized into three main categories: general skills (such as reading, writing, and basic math), occupational skills (specific skills required for a particular field or job), and firm-specific skills (skills unique to a specific company or organization). These categories are often used to analyze the value and productivity of different types of workers and the overall effectiveness of human capital investment. The other answer choices do not accurately reflect the categories of job skills outlined in human capital theory.

Question 5

Training can have all of the following market imperfections EXCEPT
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

Accepted Answer

All of the choices listed are possible imperfections of the training market.

Question 6

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

Accepted Answer

The answer of If a minimum wage covers only part...

Question 7

The largest federal training program as of 2012 was
A)The Job Corps
B)The Workforce Investment Act
C)AmeriCorps/Vista
D)Supplimentary Security Income

Accepted Answer

According to the Department of Labor's Employment and Training Administration, the largest federal training program as of 2012 was the Workforce Investment Act (WIA) program. The WIA program provides funding for a variety of employment and training services for job seekers and employers.

Question 8

The president most associated with job training and the War on Poverty is
A)Lyndon Johnson
B)John F.Kennedy
C)Ronald Reagan
D)Bill Clinton

Accepted Answer

Lyndon Johnson introduced the Economic Opportunity Act of 1964, which established the Job Corps and other programs aimed at training and employing the underprivileged. This legislation was a key component of Johnson's War on Poverty.

Question 9

Developed nations deal with labor market imperfections involving training by
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

Accepted Answer

The best choice is D as it includes all three options - taxing firms that don't train, funding national apprenticeship programs and practicing job training and job rotation during slack periods. By implementing these strategies, developed nations can address labor market imperfections involving training and ensure that workers have the necessary skills to meet the demands of a changing economy. Taxing firms that don't train encourages them to invest in their employees and promotes skill development. Funding apprenticeship programs provides a structured way for individuals to gain the necessary skills and knowledge for a specific industry or occupation. Practicing job training and job rotation during slack periods helps to ensure that workers are constantly learning and developing their skills, even when demand for their services is low.

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

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

Under a monopsony model a well-placed minimum wage will

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

The basic categories of job skills in human capital theory are

Training can have all of the following market imperfections EXCEPT

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

The largest federal training program as of 2012 was

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

Developed nations deal with labor market imperfections involving training by