Labor Economics George Borjas 8e – Test Bank

Chapter 1 Introduction to Labor Economics

1) Which isn’t a choice made by potential employees in the US?
A) deciding whether or not or to not take part within the labor pressure
B) figuring out how one can divide one’s time between work and leisure
C) selecting how a lot to provide to maximise agency revenue
D) selecting how a lot schooling to obtain
E) deciding which occupation to pursue

2) Which of the next isn’t a number one actor in labor markets?
A) shoppers
B) companies
C) employees
D) authorities
E) unions

3) The labor demand curve exhibits what number of employees the agency is prepared to rent
A) at any explicit time.
B) at a specific quantity of labor equipped.
C) at any given wage.
D) into high-skill jobs.
E) when demand for the agency’s output is low.

4) An outward shift within the labor demand curve implies that
A) employers at the moment are seeking to rent extra employees at any given wage.
B) employers at the moment are seeking to rent fewer employees if the wage decreases.
C) employers at the moment are seeking to rent fewer employees whatever the wage.
D) demand for the agency’s output doubtless fell.
E) a larger variety of employees at the moment are extra prepared to work at any given wage.

5) The labor provide curve exhibits what number of employees are prepared to work
A) in a specific trade.
B) at any given time.
C) on the minimal wage.
D) at any given wage.
E) with a purpose to maximize the agency’s revenue.

6) An upward-sloping labor provide curve implies that
A) a agency can at all times rent extra employees, even with out growing the wage.
B) extra employees are prepared work when wages are low.
C) extra employees are prepared to work because the market wage will increase.
D) the labor provide is mounted.
E) there’s a constantly growing demand for labor.

7) Labor economics issues
A) how labor markets work.
B) the examine of schooling choices.
C) the examine of how households resolve the place to stay.
D) the examine of earnings inequality.
E) All of those are labor economics issues.

8) A agency’s labor demand curve is usually
A) a vertical line.
B) a horizontal line.
C) upward sloping.
D) downward sloping.
E) related to a slope equal in absolute worth to the slope of the labor provide curve.

9) The everyday labor provide curve
A) is u-shaped.
B) equals the marginal product of labor.
C) slopes up.
D) slopes down.
E) is determined by the dimensions of the agency.

10) Which of the next impacts the wage a agency is prepared to pay its employees?
A) the productiveness of employees
B) client demand for the products and/or providers that the agency creates
C) the quantity of fringe advantages the agency is required by legislation to pay
D) the extent of payroll taxes the agency should pay
E) All the above have an effect on the wage a agency is prepared to pay its employees.

11) Which of the next impacts an individual’s resolution to work?
A) the value of consumption items relative to the wage
B) the particular person’s earnings from nonlabor sources
C) how a lot the particular person enjoys working
D) the quantity of fringe advantages supplied to the particular person
E) All the above have an effect on an individual’s resolution to work.

12) Labor market equilibrium is greatest characterised by
A) a wage at which all individuals have a job.
B) a wage at which all employees are above the poverty degree.
C) a wage at which the variety of individuals prepared to work equals the variety of employees companies are prepared to rent.
D) a minimal wage at which everyone seems to be prepared to work.
E) all employees receiving their excellent wage.

13) Labor economists typically check with labor demand as “derived” demand. On this context, the place does “derived” come from?
A) the agency’s manufacturing perform
B) the union’s willingness to just accept a decrease wage
C) client demand for the agency’s product
D) the agency’s revenue
E) the diploma of competitors within the agency’s trade

14) The federal government is a participant within the U.S. labor market partially as a result of the federal government
A) determines who’s allowed to attend school.
B) assigns potential employees to explicit industries.
C) units office security guidelines and rules.
D) suggests a minimal wage for companies to pay.
E) funds employer-based medical health insurance advantages.

15) A agency’s demand for labor is derived partially from
A) employee preferences for jobs.
B) client demand for the agency’s product.
C) the extent of month-to-month union dues.
D) the agency’s sunk prices.
E) the worth of the agency’s inventory value.

16) The market for economists in Greenland has lately skilled a rise within the variety of economists employed and a rise within the wage paid to economists. What might have generated such a change?
A) The demand for economists lately elevated whereas the availability of economists remained unchanged.
B) The demand for economists lately decreased whereas the availability of economists remained unchanged.
C) The demand for economists remained unchanged whereas the availability of economists elevated.
D) The demand for economists remained unchanged whereas the availability of economists decreased.
E) The demand for economists lately decreased whereas the availability of economists lately elevated.

17) Suppose labor provide may be described as ES = 0.1w − 1000 the place w is yearly wage. What number of employees are prepared to work when the yearly wage is $20,000?
A) 100
B) 200
C) 500
D) 1000
E) 2000

18) Suppose labor provide may be described as ES = 0.1w − 1000 the place w is yearly wage. What yearly wage should be paid to encourage 6000 employees to just accept jobs?
A) $30,000
B) $40,000
C) $50,000
D) $60,000
E) $70,000

19) Suppose labor demand may be described as ED = 120,000 − 1.5w the place w is yearly wage. What number of extra employees are demanded at a going wage of $60,000?
A) 20,000
B) 30,000
C) 40,000
D) 50,000
E) 60,000

20) What’s more likely to occur to the demand for firemen as constructing codes change to require firewalls and sprinklers to be included in all new building?
A) The demand for firemen will fall because the demand for hearth safety providers falls.
B) The demand for firemen will enhance as the availability of firemen falls when outdated buildings are changed with newer buildings.
C) The demand for firemen will stay unchanged as firemen don’t construct new building.
D) The demand for firemen will enhance so long as wages paid to employees on new building initiatives exceed the minimal wage.
E) The demand for firemen will stay unchanged so long as the property tax-base will increase when the brand new building initiatives are accomplished.

21) What’s more likely to occur to the availability of firemen as constructing codes change to require firewalls and sprinklers to be included in all new building?
A) The provision of firemen will fall as a result of there might be fewer fires.
B) The provision of firemen will enhance as a result of there might be fewer fires.
C) The provision of firemen will stay unchanged as a result of the availability curve relates the variety of hearth fighters to the wage, to not the variety of fires.
D) The provision of firemen will enhance so long as wages paid to employees on new building initiatives can also be growing.
E) The provision of firemen will lower so long as the property tax-base will increase when the brand new building initiatives are accomplished.

22) What’s more likely to occur to the labor market equilibrium for firemen as constructing codes change to require firewalls and sprinklers to be included in all new building?
A) The variety of firemen employed will enhance whereas firemen wages will lower.
B) The variety of firemen employed will lower whereas firemen wages will lower.
C) The variety of firemen employed will enhance whereas firemen wages will enhance.
D) The variety of firemen employed will lower whereas firemen wages will enhance.
E) The variety of firemen employed will stay the identical whereas firemen wages will enhance.

23) When forming theories, economists should be cautious to
A) embrace all identified information and particulars.
B) omit essential elements.
C) mirror the actual world as realistically however as merely as attainable.
D) think about historic habits and insurance policies.
E) restrict the evaluation to 2 variables.

24) What sort of questions may be answered with financial instruments with out interjecting any worth judgment as as to whether the actual final result is fascinating or dangerous?
A) normative questions
B) optimistic questions
C) labor questions
D) econometric questions
E) public coverage questions

25) What sort of questions can’t be answered with idea or information alone?
A) normative questions
B) optimistic questions
C) factual questions
D) empirical questions
E) econometric questions

26) Which of the next is a optimistic reasonably than a normative query?
A) What impact does growing welfare help by 20% have on feminine labor provide?
B) Ought to the US permit limitless immigration?
C) Ought to the “Extremely Certified Instructor” provision of No Youngster Left Behind be eradicated?
D) Ought to there be a minimal wage?
E) Ought to commerce unions be allowed to foyer Congress?

27) Which of the next is a normative reasonably than a optimistic assertion?
A) The minimal wage is $7.25 per hour.
B) Public schooling needs to be funded primarily on the state degree.
C) The federal debt exceeds $8 trillion.
D) At its peak, unemployment exceeded 10% through the 2007–08 recession.
E) The common actual wage of high-school dropouts has fallen by 10% since 1970.

28) Any financial mannequin needs to be judged totally on
A) how lifelike its assumptions are.
B) how precisely its predictions match noticed habits.
C) how straightforward the mannequin is to make use of.
D) what number of elements of real-world habits and selections are included within the mannequin.
E) how unique the mannequin is in comparison with different fashions.

29) In an econometric mannequin, the dependent variable is
A) the habits one is making an attempt to clarify.
B) unchanging throughout subsamples.
C) at all times the wage.
D) also referred to as the residual.
E) unrelated to the unbiased variables.

30) When plotting log wages (y-axis) towards years of education (x-axis), the slope of the regression line signifies
A) the common wage.
B) the common logged wage.
C) the common years of education.
D) the financial return to every extra yr of education measured in {dollars}.
E) the financial return to every extra yr of education measured in share phrases.