Question 1

Which of the following is true about millionaires?

Accepted Answer

More than 75 percent of American millionaires have college degrees, indicating a strong correlation between higher education and wealth accumulation.

Question 2

Assume that Burger King employees work in an air-conditioned environment while McDonalds employees do not. Other things equal, you would expect wages to be ____ in Burger King because ____. (Fill in the blanks)

Accepted Answer

Burger King employees work in more favorable conditions (air-conditioned), which can be seen as a non-monetary benefit, allowing the company to offer lower wages compared to McDonald's.

Question 3

Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?

Accepted Answer

Jobs that are viewed as stressful and dangerous typically require higher wages to attract workers due to the increased risk and discomfort associated with the work.

Question 4

Which of the following could be an institutional barrier to employment?

Accepted Answer

All of the options listed can act as institutional barriers to employment. Licensing requirements can limit entry into certain professions, labor unions can influence hiring practices, and minimum wages can affect the cost of hiring workers.

Question 5

Compared to the general population, millionaires are more likely to be

Accepted Answer

Millionaires are often well-educated, relatively older, and more likely to be self-employed compared to the general population.

Question 6

Millionaires tend to be older than the general population because

Accepted Answer

Many individuals become millionaires by consistently saving and investing over time, which often requires many years to accumulate wealth, leading to a higher average age among millionaires.

Question 7

Which of the following is true of occupational licensing laws?

Accepted Answer

Occupational licensing laws often create barriers to entry, reducing competition by requiring individuals to meet certain standards before they can legally work in certain professions.

Question 8

When an occupation is licensed,

Accepted Answer

Licensing often restricts entry into a profession, reducing competition and potentially leading to higher prices and less innovation.

Question 9

In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would

Accepted Answer

Equality of wage rates would not account for the varying skills and motivations of workers, leading to mismatches in labor supply and demand, causing shortages and surpluses, and potentially requiring involuntary methods to ensure work participation.

Question 10

Which of the following is true of America's millionaires?

Accepted Answer

Many millionaires are self-employed entrepreneurs, which contributes significantly to their wealth accumulation.

Question 11

Regulations that make it difficult to enter a particular job market are harmful because

Accepted Answer

Regulations that make it difficult to enter a job market can reduce competition by limiting the number of participants, which can prevent some voluntary exchanges that would otherwise occur in a more open market.

Quiz 13: Earnings, Productivity, and the Job Market