LABOR ECON EXAM #3 STUDY GUIDE
QUESTIONS) MULTIPLE CHOICE
Compensating Wage Differential: - Answer-An extra wage that compensates workers
for undesirable working conditions.
Women generally receive______ on-the-job training than men, causing their age-
earnings profiles to be _______ than those of men. - Answer-Less, flatter
Increased grants for college expenses would _______ the number of college
graduates, while _____ wages paid to college graduates (ceteris paribus) - Answer-
Increasing, decreasing
Since 1980, the college enrollment rate of both male and female recent high school
graduates has ______, while the ratio of earnings of college to high-school
graduates has ______. - Answer-Increased, Increased
Assuming that the discount rate is 5%, what is the present value of $1000 received 3
years from? - Answer-1000/(1+.05)= 952.38/1.05=907.02/1.05=
863.84
OSHA standards that decrease risk levels in the work place: - Answer-can in some
cases increase the utility level of workers and in other cases decrease their utility.
According to the human capital model, individuals are more likely to invest in college
if: - Answer-The individuals are more future oriented
On a graph of wage rates versus risk of injury, indifference curves are convex
because: - Answer-At high levels of risk, a worker more willing to give up wages for
increased safety than at a lower level of risk
Fewer women leaving the labor market to raise children has given women the
incentive to acquire _____ on-the-job training early in their careers, yielding age-
earnings profiles which are ________ than they were about twenty years ago. -
Answer-more; steeper
Lawyers work in pleasant surroundings at low risk of injury, but they generally
receive higher pay than construction workers. This is because: - Answer-Lawyers
and Construction workers are not comparable due to education level
Firm A's isoprofit curves are flatter than those of firm B. Therefore - Answer-Firm B
will be willing to pay higher wages at higher risk levels than firm A.
_______ Will increase the likelihood that a person will go to college. - Answer-A
decrease in the earnings of high school graduates.
QUESTIONS) MULTIPLE CHOICE
Compensating Wage Differential: - Answer-An extra wage that compensates workers
for undesirable working conditions.
Women generally receive______ on-the-job training than men, causing their age-
earnings profiles to be _______ than those of men. - Answer-Less, flatter
Increased grants for college expenses would _______ the number of college
graduates, while _____ wages paid to college graduates (ceteris paribus) - Answer-
Increasing, decreasing
Since 1980, the college enrollment rate of both male and female recent high school
graduates has ______, while the ratio of earnings of college to high-school
graduates has ______. - Answer-Increased, Increased
Assuming that the discount rate is 5%, what is the present value of $1000 received 3
years from? - Answer-1000/(1+.05)= 952.38/1.05=907.02/1.05=
863.84
OSHA standards that decrease risk levels in the work place: - Answer-can in some
cases increase the utility level of workers and in other cases decrease their utility.
According to the human capital model, individuals are more likely to invest in college
if: - Answer-The individuals are more future oriented
On a graph of wage rates versus risk of injury, indifference curves are convex
because: - Answer-At high levels of risk, a worker more willing to give up wages for
increased safety than at a lower level of risk
Fewer women leaving the labor market to raise children has given women the
incentive to acquire _____ on-the-job training early in their careers, yielding age-
earnings profiles which are ________ than they were about twenty years ago. -
Answer-more; steeper
Lawyers work in pleasant surroundings at low risk of injury, but they generally
receive higher pay than construction workers. This is because: - Answer-Lawyers
and Construction workers are not comparable due to education level
Firm A's isoprofit curves are flatter than those of firm B. Therefore - Answer-Firm B
will be willing to pay higher wages at higher risk levels than firm A.
_______ Will increase the likelihood that a person will go to college. - Answer-A
decrease in the earnings of high school graduates.
