With an increase in income an individual ______________

5points

consumes more time-intensive goods

consumes less goods-intensive goods

consumes more time-intensive and goods-intensive goods

consumes less time-intensive goods

During the post-training period the wage rate _______________

5points

rises for general with a higher rate than for specific training

remains the same for both general and specific training

rises with the same rate for both general and specific training

rises for general and decreases for specific training

The rate of return from years of schooling

5points

decreases, as the quantity of years suitable for work decreases

increases, as the future income increases

decreases, as the demand for labor with education decreases

decreases, as the future income decreases

An income effect makes an individual

5points

to work more

to increase its consumption

to work less

to increase its income

The marginal revenue product of labor at the local sawmill is MRPL= 50 - 0.5L, where L = the number of workers. If the wage of sawmill workers is $30 per hour, then how many workers will the mill hire?

5points

30

40

50

20

_______ shows the amount of money that can be earned according to the given wage rate.

5points

Marginal rate of substitution

An indifference curve

Consumption possibility line

A budget line

With an increase in the wage rate an individual ____________

5points

prefers to work more

prefers to work less and later to work more

prefers to work more and later to work less

prefers to work less

An increase in the demand for a good

5points

increases the demand for its substitutes

increases the demand for labor that can produce that good

increases the supply of labor that can produce that good

decreases the demand for its complements

In the labor economics an individual considers its "leisure time" as a

5points

normal good

inferior good

service

factor of production

Becky works in sales but is considering quitting work for a year to earn an MBA. Her current job pays $25,000 per year (after taxes), but she could earn $55,000 per year (after taxes) if she had a master's degree in business administration. Tuition is $10,000 per year, and the cost of an apartment near campus is equal to the $10,000 per year she is currently paying. Becky's discount rate is 6 percent per year. She is planing to work for 2 years. Based on this information, calculate the present value of her future earnings? (rounded up)

5points

60,000

75,000

66,000

110,000

Calculate labor force participation rate. Total population = 15,200,000, People below 16 years of age = 4,500,000, People in elderly care centers = 1,300,000, People who didn't look for job = 950,000

5points

90%

85%

80%

95%

The demand curve for gardeners is Gd = 25-W , where G = the number of gardeners, and W = the hourly wage. The supply curve is Gs = 4+2W .The equilibrium wage rate equals to __________

5points

2$

7$

10$

5$

A "workaholic" and a "leisure lover" are different in their ________

5points

consumption

wage rate

income

marginal rate of substitution

Differences in human capital investment do NOT include _____________

5points

ability differences

access to funds

discrimination

access to schools

_______________shows the various combinations of real income and leisure time which will yield some specific level of utility to the individual

5points

A budget line

An indifference curve

A Leisure-work preference

Marginal rate of substitution

An employee is paying for its training if ___________

5points

its about specific training and the employee gained some unique skills

its about specific training and the skills will be used somewhere else

its about general training and the skills will be used somewhere else

its about general training and the employer has requested for the training

Utility maximization can be reached when __________

5points

working time is greater than leisure time

the budget line is tangent to the lowest attainable indifference curve

the budget line is tangent to the highest attainable indifference curve

working time equals to leisure time

The decision rule says that an investment in human capital is rational if ___________

5points

an internal rate of return is smaller than zero

an internal rate of return is greater that the interest rate

an internal rate of return is smaller than the interest rate

an internal rate of return is greater than zero

Actual labor force includes____________

5points

population (+16 and -65)

total population minus population (-16)

employed and unemployed

employed and unemployed (but who is looking for a job)

Potential labor force includes

5points

total population minus retired population

population (-16 and +65)

total population minus migrants