Labour Market Economics
9th Edition Q&A Brand
New Edition
_____________________________________________________________________________________
What is probably the MOST important reason that the rate of fertility declines as the level of
education increases?
A) More family planning services and knowledge become available.
B) Children may not be normal goods. Better educated family may buy more of other goods and
services when income rises.
C) The costs of rising children are higher for better educated women.
D) The cost of education becomes cheaper for most of the women.
E) The opportunity cost of bearing children in terms of foregone income increases.
E
All of the following are theoretical determinants of retirement except:
A) health and the nature of work.
B) wealth and earnings.
C) laws specifying mandatory retirement.
D) availability of public pensions.
E) None of choices are correct.
E
Which of the following is not a pension plan in Canada?
A) the CPPprogram
B) the universal old age security program
C) an employer-sponsored retirement program
D) the guaranteed income supplement plan
E) None of choices are correct.
E
Which of the following is NOT associated with occupational/employer sponsored pension plans?
A) defined contribution plans
B) earnings based plans
C) universal retirement benefits
,D) defined benefit plans
E) None of the choices are correct.
C
The 'tax-back' feature of the guaranteed income supplement means that:
A) The payments are reduced by a certain fraction of every dollar that is earned by working.
B) Individuals lose much of their Canada Pension plan benefit if they receive this supplement.
C) The employer has to pay a tax on the amount of this benefit that is awarded to its employees.
D) Individuals will receive a refund on their tax return when they reach retirement age.
E) The payments are increased by a certain fraction of every dollar that is earned by working.
A
What is the difference between the static labour supply framework and the dynamic one?
A) Events in one time period can have repercussions for labour supply choices in another time
period in the dynamic framework but not in the static framework.
B) The static framework refers to the short run, while the dynamic one refers to the long-run.
C) The static framework refers to the long run, while the dynamic one refers to the short run.
D) The dynamic framework pertains to the present time frame, while the static framework pertains
to the entire life-cycle
E) The static framework refers only to the individual's labour supply choices, while for the
dynamic framework the spouse's decisions are taken into account.
A
The empirical research on the reasons for the incredible increase in the labour force participation
rate for women shows that:
A) Better working conditions for women in a broader array of occupations were responsible for
the increase in the participation rate.
B) Improved education facilities for women were responsible for the increase in the participation
rate.
C) Macroeconomic conditions were responsible for the increase in the participation rate.
D) Rising wages for women were responsible for the increase in the participation rate.
E) Falling fertility rates among women were responsible for the increase in the participation rate.
A
All of the following variables play an important role in the household production model except:
A) the wage rate of the worker
B) non-labour income.
C) the price of processed food (a goods-intensive commodity)
D) the time required for preparation of time-intensive goods
E) the price of raw food (or inputs to the time-intensive good)
B
In the framework of the household production model, if there is an increase in the wage rate, the
primary impact that we would expect is:
, A) a substitution effect away from the production of the goods-intensive commodity.
B) an increase in early retirement.
C) an intertemporal substitution effect.
D) a substitution effect away from the production of the time-intensive commodity.
E) a rise in fertility.
D
The effect of the retirement test, according to which pensions are clawed back, is to:
A) increase reliance of private pensions.
B) raise the supply of labour.
C) discourage recipients from working.
D) increase the funds flowing into the fund.
E) improve equity between workers and retirees.
C
In order to estimate the pure cohort effect, we need to:
A) isolate cohort effects from age effects and macroeconomic business cycle effects
B) isolate cohort effects from macroeconomic business cycle effects only
C) isolate cohort effects from macroeconomic business cycle effects and time effects
D) isolate cohort effects from age effects only
E) isolate cohort effects from time effects only
A
Based on the household production model, which of the following will lead to a definite increase in
leisure?
A) a decrease in the preparation time
B) a decrease in the price of precooked food
C) better food quality
D) a decrease in the price of raw food
E) an increase in the wage rate
B
Fertility rate is lower in the higher income families and wealthier countries because:
A) The cost of living is higher for higher income families and wealthier countries.
B) Education level is higher for higher income families.
C) Potential earnings of women are higher for higher income families and wealthier countries.
D) Children are not normal good.
E) Cost of raising children is higher in higher income families.
C
According to some empirical research, the introduction of the birth control pills:
A) reduced fertility rate in the 1960s for married women, thus inducing them to acquire more
education
B) reduced fertility rate in the 1960s for married women, but did not lead them to acquire more
9th Edition Q&A Brand
New Edition
_____________________________________________________________________________________
What is probably the MOST important reason that the rate of fertility declines as the level of
education increases?
A) More family planning services and knowledge become available.
B) Children may not be normal goods. Better educated family may buy more of other goods and
services when income rises.
C) The costs of rising children are higher for better educated women.
D) The cost of education becomes cheaper for most of the women.
E) The opportunity cost of bearing children in terms of foregone income increases.
E
All of the following are theoretical determinants of retirement except:
A) health and the nature of work.
B) wealth and earnings.
C) laws specifying mandatory retirement.
D) availability of public pensions.
E) None of choices are correct.
E
Which of the following is not a pension plan in Canada?
A) the CPPprogram
B) the universal old age security program
C) an employer-sponsored retirement program
D) the guaranteed income supplement plan
E) None of choices are correct.
E
Which of the following is NOT associated with occupational/employer sponsored pension plans?
A) defined contribution plans
B) earnings based plans
C) universal retirement benefits
,D) defined benefit plans
E) None of the choices are correct.
C
The 'tax-back' feature of the guaranteed income supplement means that:
A) The payments are reduced by a certain fraction of every dollar that is earned by working.
B) Individuals lose much of their Canada Pension plan benefit if they receive this supplement.
C) The employer has to pay a tax on the amount of this benefit that is awarded to its employees.
D) Individuals will receive a refund on their tax return when they reach retirement age.
E) The payments are increased by a certain fraction of every dollar that is earned by working.
A
What is the difference between the static labour supply framework and the dynamic one?
A) Events in one time period can have repercussions for labour supply choices in another time
period in the dynamic framework but not in the static framework.
B) The static framework refers to the short run, while the dynamic one refers to the long-run.
C) The static framework refers to the long run, while the dynamic one refers to the short run.
D) The dynamic framework pertains to the present time frame, while the static framework pertains
to the entire life-cycle
E) The static framework refers only to the individual's labour supply choices, while for the
dynamic framework the spouse's decisions are taken into account.
A
The empirical research on the reasons for the incredible increase in the labour force participation
rate for women shows that:
A) Better working conditions for women in a broader array of occupations were responsible for
the increase in the participation rate.
B) Improved education facilities for women were responsible for the increase in the participation
rate.
C) Macroeconomic conditions were responsible for the increase in the participation rate.
D) Rising wages for women were responsible for the increase in the participation rate.
E) Falling fertility rates among women were responsible for the increase in the participation rate.
A
All of the following variables play an important role in the household production model except:
A) the wage rate of the worker
B) non-labour income.
C) the price of processed food (a goods-intensive commodity)
D) the time required for preparation of time-intensive goods
E) the price of raw food (or inputs to the time-intensive good)
B
In the framework of the household production model, if there is an increase in the wage rate, the
primary impact that we would expect is:
, A) a substitution effect away from the production of the goods-intensive commodity.
B) an increase in early retirement.
C) an intertemporal substitution effect.
D) a substitution effect away from the production of the time-intensive commodity.
E) a rise in fertility.
D
The effect of the retirement test, according to which pensions are clawed back, is to:
A) increase reliance of private pensions.
B) raise the supply of labour.
C) discourage recipients from working.
D) increase the funds flowing into the fund.
E) improve equity between workers and retirees.
C
In order to estimate the pure cohort effect, we need to:
A) isolate cohort effects from age effects and macroeconomic business cycle effects
B) isolate cohort effects from macroeconomic business cycle effects only
C) isolate cohort effects from macroeconomic business cycle effects and time effects
D) isolate cohort effects from age effects only
E) isolate cohort effects from time effects only
A
Based on the household production model, which of the following will lead to a definite increase in
leisure?
A) a decrease in the preparation time
B) a decrease in the price of precooked food
C) better food quality
D) a decrease in the price of raw food
E) an increase in the wage rate
B
Fertility rate is lower in the higher income families and wealthier countries because:
A) The cost of living is higher for higher income families and wealthier countries.
B) Education level is higher for higher income families.
C) Potential earnings of women are higher for higher income families and wealthier countries.
D) Children are not normal good.
E) Cost of raising children is higher in higher income families.
C
According to some empirical research, the introduction of the birth control pills:
A) reduced fertility rate in the 1960s for married women, thus inducing them to acquire more
education
B) reduced fertility rate in the 1960s for married women, but did not lead them to acquire more
