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Structural unemployment occurs


A) as the economy goes through booms and recessions.
B) because of the changing seasons.
C) because of a mismatch between the skills of the job seekers and the location of the jobs.
D) at a constant rate.
E) only when the economy is experiencing a boom.

F) D) and E)
G) A) and B)

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Which action taken by a worker would NOT be an investment in human capital?


A) Enrolling in college.
B) Enrolling in trade school.
C) Purchasing exercise equipment.
D) Purchasing stock in a pharmaceutical company.
E) Migrating to a country with better job prospects.

F) All of the above
G) B) and D)

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D

The relationship between labour usage and output at the local Starducks is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. The relationship between labour usage and output at the local Starducks is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. -Refer to the information above.The marginal product of the third worker is __________ the marginal product of the second worker,which means that __________. A) greater than;diminishing returns are absent B) less than;diminishing returns are present C) equal to;the third worker will be hired D) less than;diminishing returns are absent E) greater than;diminishing returns are present -Refer to the information above.The marginal product of the third worker is __________ the marginal product of the second worker,which means that __________.


A) greater than;diminishing returns are absent
B) less than;diminishing returns are present
C) equal to;the third worker will be hired
D) less than;diminishing returns are absent
E) greater than;diminishing returns are present

F) None of the above
G) A) and B)

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All else remaining the same,an increase in the price firms receive for their output will


A) lower the equilibrium wage.
B) decrease labour demand.
C) increase labour supply.
D) increase labour demand.
E) lower the equilibrium employment level.

F) A) and E)
G) B) and E)

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Which of the following statement is TRUE regarding gender discrimination in the workplace?


A) Gender discrimination is a social and cultural issue but not an economic issue.
B) Any kind of discrimination in the work place imposes a cost on society.
C) There is a net economic benefit to allow for some degree of gender discrimination in the work place.
D) Gender discrimination can be efficient because it identifies observationally equivalent workers.
E) Gender discrimination leads to socially efficient levels of employment.

F) B) and D)
G) A) and B)

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If Mary does not have a job,she is only classified as being unemployed if


A) she has given up looking for a job.
B) she has never looked for a job.
C) she actively looked for a job in the last month.
D) she has retired.
E) she is a student.

F) A) and C)
G) A) and E)

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Canadian male workers are working _________ hours in their lifetimes because they _________ and ____________.


A) more;stay in school longer;retire earlier
B) fewer;stay in school longer;retire later
C) more;leave school earlier;retire later
D) fewer;leave school earlier;retire earlier
E) fewer;stay in school longer;retire earlier

F) B) and D)
G) All of the above

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The value of marginal product for the last worker hired is $20 and the wage rate is $25.The firm


A) should hire another worker.
B) is maximizing profit.
C) should keep the last worker it hired.
D) is minimizing cost.
E) should hire fewer workers.

F) A) and D)
G) C) and D)

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Occupational segregation remains a characteristic of the labour market of


A) only Canada.
B) only the U.S.and the United Kingdom.
C) only Canada and the United Kingdom.
D) only Canada and the U.S.
E) Canada,the U.S. ,the United Kingdom,and other developed countries.

F) A) and D)
G) A) and B)

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According to proponents of human capital theory,education


A) increases a worker's productivity.
B) identifies more productive workers for employers,but does not directly increase productivity.
C) should result in all workers with college degrees earning more than all workers who hold only high school diplomas.
D) is an investment with primarily higher returns and lower risks than those available through investments in physical or financial capital.
E) is a mere signal of greater ability.

F) A) and B)
G) A) and E)

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In the labour market,a perfectly competitive firm and a monopsonist are similar in that both


A) take the wage rate as their marginal labour cost.
B) hire the same number of workers.
C) hire up to the point where the extra revenue from,and the extra cost of,the last worker are the same.
D) face an upward-sloping labour supply curve.
E) determine the wage rate they pay.

F) A) and C)
G) All of the above

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For a monopsonist,the wage rate is


A) greater than marginal labour cost.
B) less than marginal labour cost.
C) equal to marginal labour cost.
D) the cost of hiring an extra worker.
E) a measure of the cost of hiring an extra worker.

F) C) and D)
G) A) and C)

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Stereotypical thinking with regard to the labour market results in the assumption that some people have the ability


A) to do all of the jobs available.
B) to improve their job satisfaction.
C) to do none of the jobs available.
D) to do only some of the jobs available.
E) to maximize profits.

F) D) and E)
G) C) and E)

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At firm M,labour costs increased from $158 to $170 when the last worker was hired.If the wage rate is __________ then firm M must be a(n) __________.


A) more than $12;monopsonist
B) less than $12;monopsonist
C) less than $12;perfect competitor
D) more than $12;perfect competitor
E) exactly $12;monopsonist

F) B) and D)
G) C) and D)

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The amount by which labour cost rises when an additional worker is hired is termed


A) marginal product.
B) the value of marginal product.
C) the cost of marginal product.
D) marginal labour cost.
E) marginal cost.

F) B) and C)
G) A) and E)

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If a person is working,it is the result of two decisions: the firm's decision to _________ and the worker's decision to ________________.


A) remain in business;accept the job
B) offer a job;look for a job
C) offer a job;accept the job
D) remain in business;look for a job
E) pay minimum wage;accept the job

F) B) and D)
G) C) and D)

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Josie has an undergraduate degree in economics and has been working as a utility rate analyst at the local electricity utility.If she continues on her present career path,the present value of her lifetime earnings is $250,000.If she takes two years off and gets an MA degree in economics,the present value of her lifetime earnings is $275,000.The annual cost of an MA degree in economics is $15,000 and the interest rate is 8%.Assume that school fees are paid at the beginning of the year. -Refer to the information above.Based on the discounted (present value) benefit and cost of acquiring a MA degree in economics,Josie should


A) get the MA degree.
B) get an MA degree but in a different field.
C) get a different undergraduate degree.
D) not get the MA degree.
E) skip the MA degree and go directly to a PhD.

F) B) and D)
G) None of the above

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D

If Billy's value of marginal product is $6,one can infer that


A) the price per unit of output is $6.
B) Billy's marginal product is $6.
C) the price per unit of output multiplied by Billy's marginal product is $6.
D) the price per unit of output is at least $1.
E) Billy's marginal product is at most $6.

F) None of the above
G) C) and D)

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Compared to a perfectly competitive firm,the monopsonist's marginal labour cost is __________,resulting in a __________ socially optimal level of output.


A) greater;less than
B) greater;greater than
C) smaller;less than
D) smaller;greater than
E) the same;less than

F) All of the above
G) A) and B)

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A

In a competitive labour market,the equilibrium wage rate is determined by


A) custom and tradition.
B) employers.
C) the intersection of labour demand and labour supply.
D) employees.
E) government regulation.

F) A) and E)
G) A) and C)

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