Question

I need just answer!

1.

Suppose Noah has an individual labour supply curve that is upward-sloping. Which of the following increases would Noah respond to, and how?

Select one:

a. the wage, by enjoying more leisure

b. the wage, by working more hours per week

c. the opportunity cost of leisure, by working fewer hours per week

d. the opportunity cost of leisure, by taking vacations without pay

2.

Which of the following does the neoclassical theory of labour predict for the competitive equilibrium in labour markets?

Select one:

a. The wage paid to each worker is equal to that worker's marginal product of labour.

b. The minimum wage will be binding.

c. Each worker is paid the value of his/her marginal contribution to the economy.

d. The distribution of wages across the economy will be bell-shaped.

3.

What can we say about the wage difference between jobs that require education and those that do not?

Select one:

a. It does not affect the supply of workers in the different labour markets.

b. It is a barrier to obtaining an education.

c. It encourages workers to bear the cost of acquiring education.

d. It is not likely to be related to productivity differences

4.

Suppose that Zambia dramatically raised the educational level of its people. If this effort had no effect on the wages of its workers, which theory of education could this be interpreted to support?

Select one:

a. the compensating-differential theory of education

b. the signalling view of education

c. the human-capital view of education

d. the natural-ability theory of education

5.

Which of the following is the main difference between human capital and physical capital?

Select one:

a. Human capital is a specific type of physical capital.

b. Human capital is an important determinant of wages, and similar to physical capital, it plays an important role in the production of goods and services.

c. Human capital is very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

d. Human capital is an important determinant of wages, but unlike physical capital, it plays no important role in the production of goods and services.

6.

Taxicab drivers in large cities are likely to earn more than taxicab drivers in rural areas. What could be one reason for this wage differential?

Select one:

a. Driving in a large city is easier than driving in a rural area.

b. Driving in large cities is more exciting than driving in rural areas.

c. Drivers in a large city can work longer hours than those in a rural area.

d. Driving a taxi in a large city is more dangerous than driving in a rural area.

7.

Suppose employers sort employment applications into high-ability and low-ability people based on the attainment of a university degree. This would provide evidence in support of which of the following?

Select one:

a. the principle that education enhances marginal productivity

b. the neoclassical principle that most business owners are more interested in discriminating against a particular group than in maximizing profits

c. the signalling theory of education

d. the human-capital theory of education

Answer 1

Q1) The answer is (b)  the wage, by working more hours per week

Since the labor supply curve is upward sloping, an increase in wages will result in an increase in labor supply. All other options show a decline in labor supply and are thus wrong

Q2) The answer is (c)  Each worker is paid the value of his/her marginal contribution to the economy.

The worker is paid his/her marginal revenue product. This is the profit max condition.

Q3) The answer is (c) It encourages workers to bear the cost of acquiring education

If there was no wage difference, no one will invest in education.

Q4) The answer is (d) the natural-ability theory of education

This states that people are already naturally highly able and do not need education to efficiently perfrom their duties.