Question

1. Age-earnings profiles, especially those for men, tend to be very steep early on and then flatten out. According to the human-capital investment framework, this occurs because

   		on-the-job training investments have a higher payoff for younger workers.
   		on-the-job training investments that lead to the acquisition of general skill will be paid for by workers in the form of lower wages.
   		on-the-job training investments lead to new skills and subsequently higher wages
   		All of these.

1. A government policy likely to be helpful in dealing with structural unemployment is

   		a requirement that firms give employees advance notice of plant closings.
   		a minimum wage law.
   		an increase in unemployment insurance.
   		the creation of public sector jobs.

1. Employment contracts for the majority of American workers take the form of

   		formal documents precisely specifying in advance the obligations of each party
   		oral agreements that can be legally enforced when necessary.
   		a broad set of informal understandings between each party.
   		collective bargaining agreements made between an employer and a union.

Answer 1

1.Option D

Answers b and c relate to the steepening of the age-earnings profile, while Answer a accounts for the flattening of the profile as age increases.

2.Option A

By giving advance information to workers regarding closure of plant the government is helping the workers to find a new Employment.Structural unemployment is caused by a mismatch of skills between the unemployed and available jobs. Structural unemployed is caused by changes in the economy, such as deindustrialisation, which leaves some unemployed workers unable to find work in new industries with different skill requirements.

3.Option A

At Will Employment Contract is the most common employment contract in the United States. In this type of contract the employee can quit or be fired at any time for any reason as long as it is not illegal. Illegal reasons would include discrimination such as terminating a person in a protected class or for retaliation. When a new employee is hired he receives a contract from his employer that states his salary, position, duties and hours. The employee signs the contract accepting the terms. It is also signed by the employer. Although, the employee can be terminated at-will, he still has the right to enforce the terms of the contract.