Labour Market Economics
9th Canadian Edition
by Dwayne Benjamin
Complete Chapters Test Bank
are included (Ch 1 to 17)
* There is no Test Bank for Ch. 1
** Immediate Download
** Swift Response
** All Chapters included
,Ch 02 9ce
Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Empirical literature on labour supply patterns for married women tends to find all of the
following, except:
A) Labour market participation rate for married women was highest in the 35-44 age
group.
B) Women with children have lower rates of labour force participation.
C) The higher the education level, the higher the labour force participation rate.
D) The strong negative relationship between the husband's income and the labour force
participation rate for married women.
E) Participation rate for all married women is around 75 percent.
2) Which of the following statements concerning the elasticity of labour supply is true?
A) The total wage elasticity of supply tends to be positive and of low magnitude.
B) The income elasticity of supply tends to be positive and of low magnitude
C) The compensated elasticity of supply is close to zero
D) Overall workers tend to be highly responsive to wage changes
E) None of these above statements are true
3) Which of the following statements concerning the elasticity of labour supply is false?
A) The overall labour supply for both sexes is likely to be backward bending.
B) It is generally higher for women than for men.
C) The compensated elasticity (reflecting the substitution effect) tends to be higher in
magnitude than the uncompensated, gross elasticity.
D) The overall labour supply for both sexes is likely to be upward sloping
E) The elasticity of labour supply with respect to income is negative.
4) Which of the following statements is false?
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, Ch 02 9ce
A) In periods of high unemployment, discouraged workers tend to withdraw from the
labour force.
B) In periods of low unemployment, discouraged workers tend to re-enter the labour
force.
C) Discouraged workers are part of the hidden unemployment phenomenon
D) Discouraged workers are considered to be marginally attached to the labour force
E) Discouraged workers behave in a similar fashion as added workers.
5) Suppose a worker is observed to be working but is forced to work fewer hours than she
really wants to work. Which of the following statements is true?
A) The indifference curve that she is on is tangent to the budget line.
B) She is on an indifference curve which is lower than the one which is tangent to her
budget line.
C) She is on an indifference curve which is higher than the one which is tangent to her
budget line.
D) She is on an indifference curve which is lower than the one which passes through the
point on the budget line corresponding to zero hours of work.
E) She is not on an indifference curve.
6) The slope of the indifference curve at the lower right-hand corner of the income/leisure
diagram, where zero hours of work are supplied to the labour market, is equal to:
A) the prevailing market wage.
B) the reservation wage.
C) the level of non-market income.
D) the slope of the budget constraint.
E) the difference between the market wage and the reservation wage
7) The reservation wage is defined as:
Version 1 2
9th Canadian Edition
by Dwayne Benjamin
Complete Chapters Test Bank
are included (Ch 1 to 17)
* There is no Test Bank for Ch. 1
** Immediate Download
** Swift Response
** All Chapters included
,Ch 02 9ce
Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Empirical literature on labour supply patterns for married women tends to find all of the
following, except:
A) Labour market participation rate for married women was highest in the 35-44 age
group.
B) Women with children have lower rates of labour force participation.
C) The higher the education level, the higher the labour force participation rate.
D) The strong negative relationship between the husband's income and the labour force
participation rate for married women.
E) Participation rate for all married women is around 75 percent.
2) Which of the following statements concerning the elasticity of labour supply is true?
A) The total wage elasticity of supply tends to be positive and of low magnitude.
B) The income elasticity of supply tends to be positive and of low magnitude
C) The compensated elasticity of supply is close to zero
D) Overall workers tend to be highly responsive to wage changes
E) None of these above statements are true
3) Which of the following statements concerning the elasticity of labour supply is false?
A) The overall labour supply for both sexes is likely to be backward bending.
B) It is generally higher for women than for men.
C) The compensated elasticity (reflecting the substitution effect) tends to be higher in
magnitude than the uncompensated, gross elasticity.
D) The overall labour supply for both sexes is likely to be upward sloping
E) The elasticity of labour supply with respect to income is negative.
4) Which of the following statements is false?
Version 1 1
, Ch 02 9ce
A) In periods of high unemployment, discouraged workers tend to withdraw from the
labour force.
B) In periods of low unemployment, discouraged workers tend to re-enter the labour
force.
C) Discouraged workers are part of the hidden unemployment phenomenon
D) Discouraged workers are considered to be marginally attached to the labour force
E) Discouraged workers behave in a similar fashion as added workers.
5) Suppose a worker is observed to be working but is forced to work fewer hours than she
really wants to work. Which of the following statements is true?
A) The indifference curve that she is on is tangent to the budget line.
B) She is on an indifference curve which is lower than the one which is tangent to her
budget line.
C) She is on an indifference curve which is higher than the one which is tangent to her
budget line.
D) She is on an indifference curve which is lower than the one which passes through the
point on the budget line corresponding to zero hours of work.
E) She is not on an indifference curve.
6) The slope of the indifference curve at the lower right-hand corner of the income/leisure
diagram, where zero hours of work are supplied to the labour market, is equal to:
A) the prevailing market wage.
B) the reservation wage.
C) the level of non-market income.
D) the slope of the budget constraint.
E) the difference between the market wage and the reservation wage
7) The reservation wage is defined as:
Version 1 2
