Question 1

The U.S.economy is not a perfectly competitive market.There are costs associated with negotiating contracts,enforcing agreements,taxes and less than perfectly competitive firms.Nevertheless,according to Wallis and North (1986),the U.S.economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP between 1890 and 1970.

Accepted Answer

The statement is true according to Wallis and North (1986). The U.S. economy has grown despite the presence of transaction costs, and these costs have increased as a percentage of GDP between 1890 and 1970.

Question 2

The rise of the tertiary sector is positively associated with modernization and economic ?development.

Accepted Answer

The tertiary sector includes services such as finance, healthcare, education, and entertainment which are often associated with modernization and economic development. As countries become more developed, they tend to see a shift towards a greater share of their economy coming from the tertiary sector.

Question 3

In the 20th century,tertiary employment accounted for roughly

Accepted Answer

In the 20th century, the service sector (tertiary employment) experienced significant growth, accounting for approximately 50% of the total job increases.

Question 4

Goldin (2001)gives the U.S.investment in public education credit for boosting the U.S.labor ?force participation rates and helping the U.S.economy develop.

Accepted Answer

Goldin (2001) credited U.S. investment in public education for boosting labor force participation rates and contributing to economic development.

Question 5

Goldin (2001)refers to the 20th century as the "human capital" century and credits education for the rise in overall income.

Accepted Answer

Goldin's (2001) argument is that the 20th century was characterized by substantial investing in human capital, and specifically education, which led to an increase in overall income. This view is widely accepted in the field of economics.

Question 6

The U.S.transfer system takes funds from the rich and distributes them to the poor.This transfer has significantly impacted income equality in the U.S.

Accepted Answer

The transfer system (includes programs like Social Security, Medicaid, and SNAP) does take funds from the rich and distribute them to the poor, which helps to reduce income inequality in the U.S. However, the extent to which this transfer has impacted income equality is a matter of debate and depends on various factors, such as the amount and design of transfer programs, the effectiveness in reaching those in need, and the overall economic conditions.

Question 7

The transformation in labor has dramatically impacted the distribution of income in the U.S.

Accepted Answer

The answer of The transformation in labor has dramatically impacted...

Question 8

The increase in the proportion of tertiary employment over time at the expense of both primary and secondary employment

Accepted Answer

The increase in the proportion of tertiary employment over time is generally present in all industrial countries. It is not limited to a specific region or country, and it is not restricted to countries with small government sectors. The shift towards service-oriented industries has been observed in many countries, such as Japan, Germany, and Canada.

Question 9

Adam Smith (1776)is primarily associated with the theory that industrialization proceeds at the expense of the working class.

Accepted Answer

This statement is not accurate. Adam Smith is actually known for his theory of the invisible hand and the benefits of free trade and market competition, rather than the idea that industrialization harms the working class.

Question 10

By the end of the 20th century,the countries of origin of the new U.S.immigrants shifted away from its European majority.A smaller percentage of total immigrants arrived from Europe,and more and more came from Asia,Canada and Mexico.

Accepted Answer

This is true. According to data from the Migration Policy Institute, by the end of the 20th century, the majority of immigrants to the U.S. were coming from regions other than Europe, such as Asia, Canada, and Mexico.

Question 11

The tertiary sector of the economy employs housecleaners,restaurant help and hotel employees;?it does not employ private consultants,accountants,nanotechnologists,managers and other professionals.

Accepted Answer

(It includes all service types of employment.)

Question 12

Today,about one out of four legal immigrants arrives in the U.S with experience in a professional occupation.

Accepted Answer

According to a report by the Migration Policy Institute, "About one out of four legal immigrants to the United States arrived with experience in a professional occupation." Therefore, the statement is true.

Question 13

According to Hughes and Cain (2011),today's growth in white-collar jobs is fueled by investments in education and does not depend on apprentice-style training or land holdings.

Accepted Answer

According to Hughes and Cain (2011), white-collar job growth is fueled by investments in education and does not depend on apprentice-style training or land holdings.

Question 14

Individuals rationally choosing career paths should weigh the preparation costs to the potential incomes generated within those careers.

Accepted Answer

Rational decision making involves considering the costs and benefits of different options. In the case of choosing a career path, it is important for individuals to think about the financial costs of education and training needed for that career, as well as the potential income they could earn in that field. By weighing these factors, individuals can make a more informed decision about which career path is best for them. Therefore, the statement is true.

Question 15

The unemployment rate of today is significantly lower than that rate one hundred years ago.

Accepted Answer

(It is about the same.)

Question 16

The amount earned by the tertiary laborer is determined by labor productivity in the primary and secondary sectors of the U.S.economy.

Accepted Answer

The productivity and output of the primary and secondary sectors have a significant impact on the income earned by tertiary laborers as they rely on inputs and demand from these sectors. Higher productivity in the primary and secondary sectors can lead to increased demand for goods and services provided by tertiary sectors, increasing their income potential.

Question 17

During the 20th century,the percentage of unskilled laborers in the U.S.rose steadily.

Accepted Answer

The percentage of unskilled laborers in the U.S. actually declined during the 20th century as advancements in technology and education led to a shift towards a more skilled workforce.

Question 18

The immigration rates of the 20th century returned to the high rates of the 19th century.

Accepted Answer

Immigration rates in the 20th century varied greatly due to world events, policy changes, and economic conditions, but overall, they did not consistently return to the high levels seen in the 19th century, especially during periods of restrictive immigration laws and world wars.

Question 19

Union membership is likely to fall as growth in tertiary employment occurs in the private sector.

Accepted Answer

Union membership is traditionally strong in the public sector and industries with a high concentration of unionized workers, such as manufacturing. However, as the economy shifts towards service-based and knowledge-based industries, there has been a decline in union membership. The private sector, in particular, has seen growth in tertiary employment (i.e. jobs in finance, technology, healthcare, etc.), which tend to have lower rates of unionization compared to more traditional blue-collar industries. Therefore, it is likely that union membership will fall as growth in tertiary employment occurs in the private sector.

Question 20

Which of the following economists is/are considered the leader(s)in the theory of market behavior?

Accepted Answer

All of the above economists, Alfred Marshall, Adam Smith, and David Ricardo, have made significant contributions to the theory of market behavior. Adam Smith is known as the father of modern economics and is famous for his theory on the division of labor and the concept of the "invisible hand" guiding market economies. Alfred Marshall contributed to the development of supply and demand theory, and David Ricardo is known for his work on comparative advantage and rent theory. Together, they have laid foundational principles that guide the understanding of market behavior.

Quiz 28: Population, Health, and Labor