Q66. Which of the following explains the differences in earnings byrace?

A.

differences in productivity

B.

racial discrimination

C.

differences in education and work experience

D.

all of the above

Q67. Pay disparity by race

A.

is caused solely by discrimination.

B.

is caused by a combination of discrimination and differences in skills.

C.

has disappeared in the last five years.

D.

is caused solely by differences in skills.

Q68. Suppose that differences in skills explain part of the difference in wages by race. Wage differences arising from skill differences

A.

are always classified as racial discrimination.

B.

will disappear when labor markets are in equilibrium.

C.

are not attributable to present or past discrimination.

D.

may result from past discrimination in access to education.

Q69. One reason that college graduates earn higher wages than nongraduates isbecause:

A.

there are no additional skills learned in college that increase productivity.

B.

college graduation serves as a signal of theindividual's productivity.

C.

college graduates are always less intelligent than noncollege graduates.

D.

college graduates are less equipped to deal with technologicalchange, as their skills are technologyspecific.

Q70. One reason that college graduates earn higher wages than nongraduates is because collegegraduates:

A.

acquire additional skills to allow them to work in more industries than nongraduates.

B.

always work in more dangerous jobs than nongraduates.

C.

are less equipped to deal with technologicalchange, as their skills are technologyspecific.

D.

are always more intelligent than nongraduates.

Q71. The difference in wages between college graduates and high school graduates

A.

has increased in recent years.

B.

has been stable for several decades.

C.

is smaller than in the past.

D.

is nonexistent when labor markets are in equilibrium.

Q72. Which of the following is a possible benefit of laborunions?

A.

It may help firms to retain a more experienced workforce.

B.

It may help firms reduce training costs of new employees.

C.

It may facilitate communications between workers and managers.

D.

all of the above

Q73. Of the dozen of studies that study the effect onwages, most of the studies show that immigration has________ effect on wages of the native worker as a whole.

A.

a verylarge, almost100%

B.

a relatively small

C.

a relatively large

D.

zero

Q74. Of the dozen of studies that study the effect onwages, most of the studies show that immigration decreases the wagesof:

A.

native workers with low levels of education.

B.

native PhD holders.

C.

foreign PhD holders in the United States.

D.

college students.

Q75. In2013, the income share of the highest quintilewas:

A.

almost 60 percent.

B.

almost 90 percent.

C.

20 percent.

D.

47 percent.

Q76. Which of the following is the most important reason for growing inequality in the income distribution in theU.S.?

A.

discrimination

B.

inheritances

C.

a steady increase in tuition and fees for a college education

D.

an increase in demand for highly educated workers

Q77. Which of the following explains the impact of the expansion of international trade on the demand for less skilled workers in theU.S.?

A.

The impact of the expansion of international trade on the demand for less skilled workers in the U.S. varies from year to year.

B.

An increase in international trade has increased the demand for less skilled workers.

C.

An increase in international trade has had little impact on the demand for less skilled workers.

D.

An increase in international trade has decreased the demand for less skilled workers.

Q78. The poverty rate in the U.S. is highestfor:

A.

married couples.

B.

female headed households.

C.

childless households.

D.

single people.

Q79. Poverty rates among the elderly are

A.

much lower than poverty rates among children.

B.

rising more rapidly than the poverty rates among children.

C.

higher than the poverty rates among children.

D.

approximately the same as the poverty rates among children.

Q80. A relatively high base income in a cash assistance program

A.

increases the incentive to work.

B.

reduces the incentive to work.

C.

does not affect the incentive to work.

D.

will reduce the incentive to work through the substitution effect but will increase the incentive to work through the income effect.

Q81. Recall the Application about the effects of increasing state level Earned Income Tax Credit(EITC) on child health in the United States to answer the following question.

Recall the Application. Earned Income Tax Credit improves child healthbecause:

A.

it increases employment and hence health benefits.

B.

it increasesincome, resulting in higher health expenditures.

C.

it forces children to work so they can get health insurance.

D.

A and B are both correct.

Q82. Recall the Application about the effects of increasing state level Earned Income Tax Credit(EITC) on child health in the United States to answer the following question.

Recall the Application. According to the study cited in theApplication, does EITC improve incomedistribution?

A.

No, the level of spending on EITC is so low it has no measurable effects on incomes of the poor.

B.

No, only the politicians get rich because of EITC.

C.

Yes, EITC encourages workers to stop working and get an education in the health industry.

D.

Yes, aside from increasing income forlow-income households, it improves the health levels of workers and their families.