Question : 31) Differences in skills i.can arise partly from differences in education : 1241399

31) Differences in skills

i.can arise partly from differences in education and/or partly from differences in on-the-job training.

ii.can lead to large differences in earnings.

iii.result in different demand curves for high-skilled and low-skilled labor.

A) i only

B) ii only

C) ii and iii

D) i and iii

E) i, ii, and iii

32) Other things being equal, the demand curve for low-skilled workers ________ the demand curve for high-skilled workers.

A) lies below

B) lies above

C) is the same as

D) is not comparable to

E) at high wages lies below and at low wages lies above

33) The cost of acquiring a skill accounts for why the

A) demand for high-skilled workers is different from the demand for low-skilled workers.

B) supply of high-skilled workers is different from the supply of low-skilled workers.

C) demand for high-skilled workers is different from the supply of high-skilled workers.

D) demand for high-skilled workers is different from the supply of low-skilled workers.

E) supply curves of high-skilled and low-skilled workers cross.

34) The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

A) represents the difference in the demand for these two occupations.

B) is the compensation that neurosurgeons require for the cost of acquiring this skill.

C) is the difference in the value of marginal product of the two professions.

D) is the difference in on-the-job training.

E) equals the difference in the equilibrium wages paid these two professions.

35) The wage rate that high-skilled workers receive is ________ the wage rate that low-skill workers receive.

A) greater than or equal to

B) equal to

C) less than or equal to

D) greater than

E) less than

36) If discrimination against women decreases their value of marginal product, then women will have ________ wage rate than men and there will be ________ high-paying jobs for women.

A) a lower; more

B) a higher; fewer

C) a lower; fewer

D) a higher; more

E) the same; fewer

37) Inequality in the distribution of income and wealth is increased by

A) the point that the children of the poorest find it difficult to get into college.

B) saving to redistribute an uneven income over the life cycle.

C) marrying outside one’s own socioeconomic class.

D) donating money to charities.

E) the U.S. income tax.

38) One reason economic ________ occurs is because high-skilled workers ________.

A) inequality; have a higher value of marginal product than low-skilled workers and earn higher wages

B) inequality; pay higher income taxes on their higher wages

C) income redistribution; have a higher value of marginal product than low-skilled workers

D) equality; earn higher wages so firms demand less high-skilled labor

E) equality; have a lower value of marginal product due to higher wages

39) The figure above shows the market for high and low-skilled labor. Demand curve DA represents the demand for ________ labor because ________.

A) low-skilled; low-skilled labor has a lower value of marginal product of labor than high-skilled labor

B) low-skilled; firms can afford to hire more low-skilled labor at lower wages

C) low-skilled; low-skilled labor’s marginal product declines faster than high-skilled labor

D) high-skilled; firms cannot afford to hire as many high-skilled workers

E) high-skilled; high-skilled workers pay higher wages so they have lower disposable income

40) The figure above shows the market for high and low-skilled labor. Supply curve SB represents the supply of ________ labor because ________.

A) high-skilled; these workers must receive higher pay in return for acquiring their skills

B) high-skilled; firms supply more jobs for high-skilled workers

C) low-skilled; low-skilled labor must work more hours to compensate for their lower wage

D) low-skilled; firms supply fewer jobs for low-skilled labor

E) low-skilled; low-skilled labor has a lower value of marginal product