Question

1. The household production function shows:

A.   the minimum amount of two goods that a consumer can purchase with a given money income.

B.    all possible combinations of two goods that yield the same level of utility to the consumer.

C.    all possible combinations of two goods (household and market)that can be produced, given value of the goods, and market wages.

D.   the amount of household good that a consumer is willing to give up to obtain one more unit of a market good.

2. Consider Alice and her household production function. If Alice's wage increases from $6.00 per hour to $6.50 per hour, then what can an economist say for sure

A. she will want to work fewer hours than before her raise

B. she will want to work more hours than before her raise

C. she may want to work more, fewer, or the same number of hours as before her raise

D. she will want to work the same number of hours as before her raise

3. From the perspective of the bargaining theory of labor supply (Bergmann's article), the reason most women did not work in 1950 because of a lack of choice, due to custom, and discrimination, and the unequal legal and economic position of women in the family.

A. True

B. False

4. In a competitive marketand assuming there exist no unions, minimum wage laws, non-competing groups, and so onthe wage for a particular type of labor is determined by the strength of demand for it.

A. True

B. False

5. Between 1960 and 1990

A. government failed to pass laws that granted women equal access to jobs

B. most higher paying jobs were still not legally open to women

C. women’s earnings consistently increased faster than those of men

D. the earnings gap between men and women has only slightly improved

6. Empirical studies generally find that the estimated discrimination coefficient is larger in southern versus northern states. Presuming that the wage differential is due to employer discrimination, this necessarily implies that there are more discriminating employers in the South than there are in the North.

A. True

B. False

7. Economists note that discrimination will not vanish if

A. employers have customers who are bigots so that in order to maximize profits firms may feel the need to ignore to their customer's bigotry.

B. the gap in pay is substantial.

C.    none of the above as discrimnation will always vanish.

D. firms have market power and are making sustainable economic profits and choose to "spend" some of that economic profit satisfying their bigotry.

8. According to the Global Gender Gap Report 2014 which country continues to be at the top of the overall rankings in The Global Gender Gap Index?

A. Norway

B. Iceland

C. USA

D. Canada

Answer 1

1. The household production function shows all possible combination of two goods given value of the product and market wages.

the correct option is (c)

2. If wage rate increases then Alice would want to work more hours than before her raise.

the correct option is (b)

3. True, from the bargaining theory of labor supply, the reason women did not work in the 1950s was due to customs, prejudices, and discrimination.

4. False. If there is no bargaining in terms of labor unions, the wages for a particular type of labor is determined by the additional output contributed by that labor and its additional productivity of labor would determine real wages not the strength of demand for it.