Question 1

Which of the following is most likely to improve the productivity of workers?

Accepted Answer

Investment in human capital, which includes education and training programs, can improve the skills and knowledge of workers, making them more productive. This can lead to increased output and efficiency, improving overall productivity. Federal legislation mandating benefits, an increase in unionization, and an increase in the minimum wage may provide additional benefits to workers, but they do not necessarily improve productivity.

Question 2

Economic theory suggests that college graduates receive higher wages than those with only a high school education because:

Accepted Answer

Economic theory suggests that college graduates are more productive and able to perform higher skilled jobs, which leads to a higher wage. This is due to a combination of factors such as increased knowledge and skills gained through education, as well as the signaling effect of having a degree that indicates a higher level of human capital.

Question 3

If the market wage for electrical engineers in the United States is $50 per hour, then we know that the marginal product of electrical engineers is:

Accepted Answer

If the market wage for electrical engineers is $50 per hour, then we can infer that the value of their marginal product is at least $50 an hour as the market wage reflects the value of the marginal product. This is because firms would not pay workers more than the value of their marginal product, otherwise they would make losses. Therefore, we can eliminate choices A and B. It is possible that the marginal product is less than $50 an hour, but it is unlikely that firms would pay wages higher than the marginal product they produce. Hence, the best answer is choice D - at least $50 an hour.

Question 4

The wages of office cleaners in the United States are ________ than the wages of office cleaners in India because ________.

Accepted Answer

The answer of The wages of office cleaners in the...

Question 5

Workers in many foreign countries such as India are paid much less for work that is very similar to the work done by workers in the United States. One reason for this is that:

Accepted Answer

The lower wages in foreign countries such as India can be attributed to the fact that these countries generally have lower levels of productivity and do not have the same labor laws and regulations as the United States. This means that employers can pay their workers less without penalty. It is important to note that this is a structural issue and not a reflection of the work ethic or materialistic values of workers in foreign countries.

Question 6

Which of the following statements is TRUE?

Accepted Answer

The answer of Which of the following statements is TRUE?
...

Question 7

A college education in the United States:

Accepted Answer

Studies have consistently shown that individuals with college degrees earn higher wages on average than those with only a high school diploma. This wage premium is often referred to as the "college wage premium" and supports the idea that investing in a college education can be financially beneficial in the long run. Choices B, C, and D are all incorrect. Option B is incorrect because a college education is a classic example of human capital investment. Option C is also incorrect because the wage premium associated with a college education has been well-documented in numerous studies. Finally, option D is false because, while college wages may have changed over time, a college education still commands significantly higher wages than a high school education.

Question 8

Wages for low-skilled positions are typically higher in developed countries than wages for identical positions in less-developed countries. Which of the following explains why this is the case?
I. There is a greater supply of low-skilled labor in less-developed countries.
II. There is a greater demand for low-skilled labor in developed countries.
III. There is a greater demand for low-skilled labor in less-developed countries.

Accepted Answer

Option I is correct, as low-skilled labor is abundant in less-developed countries, which reduces the going rate. II is also correct because these positions may be more in demand in developed countries due to technological advancements and a need for manual labor. III is incorrect, as stated above. Combining both points, B is the correct answer.

Question 9

One reason office cleaners in India earn less than office cleaners in the United States NOT because:

Accepted Answer

The answer of One reason office cleaners in India earn...

Question 10

The normal shape of the labor market supply curve is:

Accepted Answer

The normal shape of the labor market supply curve is positively sloped. This means that as wages increase, the quantity of labor supplied also increases.

Question 11

Workers earn higher wages:
I. when the demand for labor rises in an industry.
II. the greater the amount of human capital market issues they possess.
III. the more dangerous the job they perform.

Accepted Answer

The answer of Workers earn higher wages:
I. when the demand...

Question 12

Compared with a similar job that requires little human capital labor market issues, a job that requires a large amount of human capital labor market issues will likely pay:

Accepted Answer

A job that requires a large amount of human capital labor market issues will likely pay a higher wage rate because workers with high levels of human capital have specialized skills, knowledge, and expertise that are in high demand, and therefore command a higher wage. This is unlike a similar job that requires little human capital labor market issue, where workers do not require specialized skills or knowledge, and there is less competition for these positions. Hence, the wage rate is likely to be lower.

Question 13

The market wage for workers is:
I. equal to the marginal product of labor.
II. determined by the intersection of the firm's demand curve for labor and the individual's supply curve for labor.
III. always greater than the minimum wage.

Accepted Answer

The answer of The market wage for workers is:
I. equal...

Question 14

Which of the following does not represent a human capital labor market issues?

Accepted Answer

The level of danger in different jobs is not necessarily related to human capital labor market issues. The other options all involve some aspect of human capital development or training.

Question 15

An individual's labor supply curve:

Accepted Answer

An individual's labor supply curve can be positively sloped, negatively sloped, or perfectly inelastic. A positively sloped labor supply curve means that the individual is willing to supply more labor as the wage rate increases. A negatively sloped labor supply curve means that the individual is willing to supply less labor as the wage rate increases. A perfectly inelastic labor supply curve means that the individual is willing to supply the same amount of labor regardless of the wage rate. Therefore, the labor supply curve can be either positively or negatively sloped, or perfectly inelastic.

Question 16

The market supply of labor is upward sloping because:

Accepted Answer

When wages increase, more people are attracted to the industry, leading to an increase in the supply of labor. This is the reason behind the upward sloping market supply curve of labor.

Question 17

Why might an individual's labor supply curve bend backwards?

Accepted Answer

The backward bending labor supply curve suggests that at a certain level of wage rate, individuals may choose to work fewer hours because they have achieved sufficient income to cover their needs and desire more leisure time. Therefore, the answer is (B) because as wages rise above a certain level, the individual may opt for more leisure time.

Question 18

The market wage of computer programmers is determined by:

Accepted Answer

The answer of The market wage of computer programmers is...

Question 19

If all people had the same preferences and productivity, then the currently highest paying jobs would be the most:

Accepted Answer

The answer of If all people had the same preferences...

Question 20

In general, wages are determined:

Accepted Answer

Wages are determined by both the skills of the worker and the productivity of the entire economy. Workers with higher skills and productivity are usually paid more than those with lower skills and productivity. Additionally, wages can vary depending on the demand and supply of labor in a particular industry or occupation. The overall productivity and economic conditions of a country can also influence wage levels.

Quiz 18: Labor Markets