Question

11. Compensating wage differentials will reflect worker's evaluation of the value of nonwage job characteristics only if:

A. workers have perfect information.

B. there is sufficient worker mobility.

C. workers maximize utility, not income.

D. All of the above are correct.

E. None of the above is correct.

1.In the context of intergenerational inequality, regression toward the mean is captured by which of the following?

A. The tendency for the tax code to erode inequality by targeting the mean tax rate to mean income.

B. The tendency for countries to diverge in their inequality.

C. The tendency for the 90-50 wage gap to approach the 50-10 wage gap as a country experiences economic growth.

D. The tendency for inequality to be wider as a country experiences economic growth.

E. The tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population.

2.The value of life is calculated by comparing:

A. wages to risk levels.

B. average wages to the average retirement age.

C. risk levels to the number of children in a worker's household.

D. average life expectancy by occupation to average risk levels by industry.

E. wages to the number of children in a worker's household.

3. Which of the following reasons is not a likely explanation as to why college completion rates are greater, on average, for whites than for blacks?

A. Tuition costs are lower for whites than blacks.

B. Whites are more able to postpone earnings at age 18 than are blacks.

C. Whites have greater access to higher quality public education at the elementary and secondary level.

D. Whites have access to more financial capital to pay for college than blacks.

E. Post-college wages are higher for whites than for blacks.

4. How have average wages of college graduates compared to average wages of high school graduates over the last 30 years?

A. Relative college wages have increased drastically over the last 30 years, from being 50 percent more than high school wages in 1980 to almost 100 percent more in 2010.

B. Relative college wages have held steady over the last 30 years, with college graduates earning about 90 percent more than high school graduates during the entire period.

C. Relative college wages have increased drastically over the last 30 years, from being 20 percent more than high school wages in 1980 to almost 60 percent more in 2010.

D. Relative college wages have decreased slightly over the last 30 years, from being 40 percent more than high school wages in 1980 to just under 30 percent more in 2010.

E. Relative college wages have held steady over the last 30 years, with college graduates earning about 60 percent more than high school graduates during the entire period.

Answer 1

11. Compensating wage differentials will reflect worker's evaluation of the value of nonwage job characteristics only if: A. workers have perfect information.

1.In the context of intergenerational inequality, regression toward the mean is captured by which of the following? D. The tendency for inequality to be wider as a country experiences economic growth.

2.The value of life is calculated by comparing: B. average wages to the average retirement age.

3. Which of the following reasons is not a likely explanation as to why college completion rates are greater, on average, for whites than for blacks? B. Whites are more able to postpone earnings at age 18 than are blacks.

4. How have average wages of college graduates compared to average wages of high school graduates over the last 30 years? C. Relative college wages have increased drastically over the last 30 years, from being 20 percent more than high school wages in 1980 to almost 60 percent more in 2010.