Question

QUESTION 37

1. Holding all else constant, which of the following factors would tend to make educational investments more attractive?

   		An increase in the discount rate (r)
   		An increase in the wage earned by high school graduates
   		An increase in the age at which people retire
   		A decrease in the scores earned by high school students on tests like the Scholastic Aptitude Test (SAT)

QUESTION 38

1. Seasonal unemployment can be considered voluntary unemployment because

   		it is caused by wages being inflexible downward.
   		to attract workers to industries with well-known seasonal fluctuations in demand, employers may have to pay workers a compensating differential
   		workers are covered by unemployment insurance.
   		all of these

QUESTION 39

1. If there can be no immediate change in the quantity of labor supplied because of a lag in the training of new workers, what effect will the demand shift have on the market-clearing wage?

   		The wage will rise from point c to point e ($4 increase).
   		The wage will rise from point c to point f($10 increase).
   		The wage will remain unchanged.
   		The wage will fall from point c to point b ($5 decrease).

QUESTION 40

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.

Answer 1

Q37). The correct option is (c).

an increase in the age at which people retire.

38). The correct option (b).

to attract workers to industries with well-known seasonal fluctuations in demand,

As we know that there are different types of unemployment as cyclical unemployment, seasonal unemployment , structural unemployment etc . The seasonal unemployment is due to change in seasons.

39). The correct option is (c).

The wage will remain unchanged.

The market clearing wage would then be the wage at which the supply of labour is equal to the demand for labour. This idea of market clearing wage is similar to the market clearing prices in that buyers and sellers get what they want.

40). The correct option is (b).

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.

Hope you got the answer.

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