Economics MCQs

Page No. 217

The most important source of wage differentials are ?


aregional variation


bunionization


crelative danger


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


bmembers they have, aggressive they behave


cthe economy is growing, people prefer leisure


dthe productivity is growing vacancies exist



The opportunity cost of acquiring education is ?


acourse fees


bcourse fees and living expenses


c the earnings foregone


dCourse fees living expenses and textbook



Human capital can be described as ?


athe tools used by workers to enhance productivity


ba person inherited ability


cthe stock of expertise accumulated by a worker


deducation



The participation rate in the labour force is affected by ?


ahigher real wages


blower fixed costs of working


clower non-labour income


dall of the above


View Answer all of the above

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


aSupply of labor


bShort-run demand curve for labor


cmarginal cost of labour


dmarginal revenue product of labor



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


bincrease; reduce


creduce; reduce


dreduce; increase


View Answer reduce; reduce

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


aOne employee is more attractive than another


bOne employee is more educated than another


cAll of these answers generated


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



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


bdifferent levels of job experience


call of these answers are correct


ddifferent levels of education



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


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


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


d Discrimination cannot exist in a competitive labor market



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