Question : 1)  In a perfectly competitive labour market, all workers would : 1384284

1)  In a perfectly competitive labour market, all workers would earn the same wage if

A) the world was fair.

B) workers’ education and experience were identical.

C) all jobs had the same working conditions.

D) regional variables mattered.

E) jobs and workers were identical in every way.

2) If labour markets were perfectly competitive,

A) all workers would eventually earn the same wage.

B) all workers would achieve the same levels of education and experience.

C) working conditions would be the same for all jobs.

D) wage differentials could still exist because of differences in workers and jobs.

E) discrimination could not create wage differentials.

3) One possible reason for wage differentials is that

A) there are competitive forces operating in labour markets.

B) discrimination affects labour-market outcomes.

C) working conditions are the same for most jobs.

D) workers have more-or-less equal skills.

E) there is only a single national labour market.

4) Other things being equal, individuals working in relatively risky working conditions generally

A) earn higher wages due to the greater relative demand for these individuals.

B) earn higher wages due to the reduced supply of risk-taking individuals.

C) earn lower wages because of the scarcity of these jobs.

D) do not concern economists as these situations are uncommon.

E) work in perfectly competitive labour markets.

5) All of the following are classified as human capital EXCEPT

A) education.

B) training.

C) gender.

D) health.

E) experience.

6) One attempt to provide some minimum level of human capital for all citizens is a system of

A) compulsory and publicly financed education.

B) income taxation.

C) unionism.

D) comparable worth.

E) minimum wages.

7) If you choose to stay in school beyond the compulsory minimum period, you are

A) realizing the benefits of your investment in human capital.

B) delaying your investment in human capital.

C) refusing to invest in your human capital.

D) investing further in your human capital.

E) wasting your time from an economic standpoint.

8) During recessions, individual investment in higher education typically ________ due to the relatively ________ opportunity cost of time spent in university.

A) rises; high

B) rises; low

C) falls; high

D) falls; low

E) stays constant; constant

9) Investment in human capital can be very costly to the individual, but it can also generate large returns. Canadian census data from 2007 show that average employment income for a university graduate is approximately ________ of the average employment income of a worker with no more than a high school diploma.

A) 50%

B) 125%

C) 200%

D) 300%

E) 400%

10) Wage differentials due to cross-worker differences in human capital

A) are not justifiable on efficiency grounds.

B) will persist in competitive equilibrium.

C) are not an important source of observed wage differentials.

D) are an example of economic distortions due to monopoly power.

E) exist because of distortions in labour markets.