In the United States, the wealthiest 10 percent of households earn approximately what
share of total income?
A. 5%
B. 10%
C. 30%
D. 50%
E. 80%
The female-male wage gap in the United States
A. has been increasing over the last 30 years.
B. has been decreasing over the past 30 years.
C. is non-existent.
D. has been decreasing so much that while a raw wage gap still exists it is quite small.
E. will likely change from negative to positive over the next decade.
Workers with high earnings potential are likely to earn more and to have better working
conditions than workers with low-earnings potential. This positive correlation between
earnings and working conditions:
A. makes it easy to find evidence that workers trade off some earnings in exchange for
better working conditions.
B. makes it difficult to find evidence of compensating wage differentials associated
with working conditions.
C. suggests low-skill and high-skill workers have similar working conditions.
D. suggests high-skill workers are typically overpaid.
E. suggests low-skill workers are more efficient per dollar paid in wages plus fringe
benefits than are high-skill workers.
The superstar phenomenon explains why
A. some people are paid extraordinary sums of money for talents that many people
have.
B. a few people are paid extraordinary sums of money for extreme talents that only a
few people have.
C. most people are paid relatively modest sums of money for talents that just a few
people have.
D. superstars have talents that far exceed even the next best person in the field.
E. there are fewer superstars with the passing of time.
Which one of the following statements is true?
A. A monopolist is necessarily a monopsonist.
B. A monopsonist is necessarily a monopolist.
C. A monopsonist is a perfectly discriminating monopolist.
D. Firm surplus always exceeds worker surplus.
E. None of the above statements are true.
When the labor force participation rate falls, the average wage in the economy is likely
to increase. Why?
A. Because workers who have the worst wage options are those most likely to leave the
labor force.
B. Because educated workers are those most likely to leave the labor force.
C. Because the most experienced workers are those most likely to leave the labor force.
D. Because wages dont take into account salaried workers.
E. Because the U.S. has a negatively skewed wage distribution.
Suppose 1 in 80 workers die on the job each year in Coppers Coal Mine, while 1 in 75
workers die on the job each year in Silver Creek Coal Mine. Moreover, the average
salary is $70,000 at Coppers Coal Mile and is $72,000 at Silver Creek Coal Mine.
Given this information, what is the implied statistical value of a life of a miner?
A. $2,000
B. $70,000
C. $480,000
D. $1,200,000
E. $2,400,000
Which of the following affects the wage a firm is willing to pay its workers?
A. The productivity of workers.
B. Consumer demand for the goods and/or services that the firm creates.
C. The amount of fringe benefits the firm is required by law to pay.
D. The level of payroll taxes the firm must pay.
E. All of the above affect the wage a firm is willing to pay its workers.
Since 1980, unemployment rates have been _________ in Europe relative to in United
States.
A. higher
B. lower
C. about the same
D. unpredictable
E. adjusting
Why might people choose to go to college?
A. Because a college education signals to firms that the worker is highly motivated.
B. Because a college education increases ones productivity, which will be rewarded in
the labor market with higher wages.
C. Because someone enjoys the process of becoming educated.
D. Because one cannot find employment.
E. All of the above.
Which one of the following statements is true?
A. Firms try to attract unions to their plants and factories.
B. Unions are beneficial to all workers.
C. Unions tend to negotiate better fringe benefits for their members than what
non-union workers receive.
D. Many workers are likely to lose their jobs when firms become unionized.
E. A union is legally allowed to undertake any bargaining tactics that it wishes.
When the possibility for strongly efficient contracts occurs, what will happen?
A. The union and firm negotiate over the employment level but not over the wage.
B. The union and firm negotiate over the wage level but not over the employment level.
C. The labor demand curve must be vertical.
D. Isoprofit lines must be horizontal.
E. Isoprofit lines are parabolas that open upward.
At what point should a firm stop hiring workers?
A. When the wage per worker starts to increase.
B. When the price of capital starts to decrease.
C. When the firms marginal gain from hiring an additional worker is zero.
D. When the firms marginal profit from hiring an additional worker equals the cost of
hiring that worker.
E. When the firms value of marginal product equals zero.