Question : 20.2   How Economic Inequality Arises 1) Workers who have invested in : 1241417

 

20.2   How Economic Inequality Arises

 

1) Workers who have invested in education and training

A) are more likely to find jobs that are not rewarding.

B) have a higher value of marginal product.

C) have a more difficult time finding a job because their wage rate is higher.

D) have identical supply curves to otherwise similar workers who have not invested in education and training.

E) None of the above answers is correct.

2) The demand for labor

i.depends on the availability of labor.

ii.decreases when the supply of labor increases.

iii.depends on the value of marginal product of labor.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

 

3) One reason why economists earn more than Taco Bell workers is because economists have a ________ value of marginal product of labor than Taco Bell workers.

A) lower

B) higher

C) similar

D) more convex

E) more concave

 

4) The gap between the salary of Tom Cruise and an unknown actor is over $15 million per movie. This difference means that Mr. Cruise’s value of marginal product is

A) over $15 million greater than the value of the marginal product of the unknown actor.

B) less than $15 greater than value of the marginal product of the unknown actor.

C) $15 million greater than the value of the marginal product of the unknown actor.

D) equal to the value of the marginal product of the unknown actor.

E) More information is need to make the comparison.

5) If a firm is willing to pay a high-skilled worker $25 per hour and a low-skilled worker $10 per hour then the value of marginal product of skill is

A) $15.

B) $40.

C) $10.

D) $25

E) There is not enough information to answer this question.

 

6) Which of the following is true? At a given quantity of employment, if the

i.value of marginal product of a high-skill worker is $35 and the value of marginal product of a low-skill worker is $10, the value of marginal product of the skill is $25.

ii.value of marginal product of a high-skill worker is $35 and the value of marginal product of a low-skill worker is $10, the cost of acquiring the skill is $25.

iii.value of marginal product of a skill is $25, then the wage rate must be $25.

A) i only

B) ii only

C) iii only

D) i and iii

E) ii and iii

 

7) Which of the following is (are) a difference between high-skilled workers and low-skilled workers?

i.High-skilled workers have a higher value of marginal product.

ii.High-skilled workers have incurred lower opportunity costs to acquire their skills.

iii.The demand for high-skilled workers exceeds that for low-skilled workers.

A) i only

B) ii and iii

C) i and ii

D) i and iii

E) i, ii, and iii

8) The demand curve for high-skilled workers

A) lies to the right of the demand curve for low-skilled workers.

B) lies to the left of the demand curve for low-skilled workers.

C) is vertical.

D) is horizontal.

E) lies to the right of the demand curve for low-skilled workers at high wages and to the left of the demand curve for low-skilled workers at low wages.

 

9) Suppose a supply curve for high-skilled labor is drawn in the same graph as a supply curve for low-skilled labor. The vertical distance between these two curves represents the

A) wage rate paid to a high-skilled worker.

B) wage rate paid to a low-skilled worker.

C) compensation the high-skilled worker requires for the cost of acquiring the skill.

D) number of high-skill workers that will be hired.

E) difference in the value of marginal product between the high-skilled workers and the low-skilled workers.

 

10) Skills are costly to acquire. What forms do these costs take?

i.out-of-pocket expenditures to pay for more education

ii.a higher value of marginal product

iii.forgone earnings while attending higher education

A) i only

B) ii only

C) iii only

D) i and iii

E) i, ii, and iii