Economics MCQs

Page No. 217

The most important source of wage differentials are ?


aregional variation

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bunionization

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crelative danger

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dskills

✓


View Answer skills

Unions achieve a higher wage differential the more _____ and the more ______?


ainelastic the demand for labour, they can restrict the supply of labour

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bmembers they have, aggressive they behave

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cthe economy is growing, people prefer leisure

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dthe productivity is growing vacancies exist

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The opportunity cost of acquiring education is ?


acourse fees

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bcourse fees and living expenses

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c the earnings foregone

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dCourse fees living expenses and textbook

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Human capital can be described as ?


athe tools used by workers to enhance productivity

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ba person inherited ability

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cthe stock of expertise accumulated by a worker

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deducation

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The participation rate in the labour force is affected by ?


ahigher real wages

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blower fixed costs of working

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clower non-labour income

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dall of the above

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View Answer all of the above

The downward sloping marginal physical product of labor is the firm’s ?


aSupply of labor

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bShort-run demand curve for labor

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cmarginal cost of labour

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dmarginal revenue product of labor

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The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it


a increase; increase

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bincrease; reduce

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creduce; reduce

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dreduce; increase

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View Answer reduce; reduce

Which of the following is likely to generate a compensating differential ?


aOne employee is more attractive than another

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bOne employee is more educated than another

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cAll of these answers generated

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dOne employee is willing to work the nightshift while another is not.

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A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?


adifferent preferences for the type of work they are willing to do

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bdifferent levels of job experience

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call of these answers are correct

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ddifferent levels of education

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Which of the following statements regarding discrimination is true ?


a The existence of a wage differential among groups is strong evidence of discrimination in the labour market

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bDiscrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination

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c Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

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d Discrimination cannot exist in a competitive labor market

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