Question

The wage-schooling locus is

A. downward sloping because education is generally productive.

B.	upward sloping because education is generally productive.

C.	backward bending.

D.	horizontal because wages are unrelated to schooling.

E.	vertical because education is a public good.

Present value calculations allow one to determine

A.	the return to an uncertain asset.

B.	the present-day costs and/or benefits of various options.

C.	the utility value of a particular option.

D.	the social cost of financial calculations.

E.	the real wage.

What is an example of specific job training?

A.	Learning word-processing skills.

B.	Learning how to use the firm's payroll system.

C.	Obtaining a GED.

D.	Becoming stronger.

E.	Passing the CPA exam.

What is an example of general job training?

A.	Learning how to use a forklift.

B.	Learning how to weld.

C.	Reading a book on techniques for managing large groups of workers involved on team projects.

D.	Attending an industry convention on "best practices."

E.	All of the above.

Why is it that a firm will typically not pay for general training?

A.	General training is free.

B.	General training is too expensive.

C.	The benefits of general training depreciate quickly.

D.	General training usually doesn't increase worker productivity.

E.	The skills gained from the general training are transferable to other firms.

What is the stopping rule for choosing one's years of schooling?

A.	End one's schooling when the return from more schooling is zero.

B.	End one's schooling when the cost of one more year of schooling is zero.

C.	End one's schooling after college.

D.	End one's schooling when the rate of return to one more year of schooling equals the worker's rate of discount.

E.	End one's schooling when the worker's rate of discount equals zero.

Why might people choose to go to college?

A.	Because a college education signals to firms that the worker is highly motivated.

B.	Because a college education increases one's productivity, which will be rewarded in the labor market with higher wages.

C.	Because someone enjoys the process of becoming educated.

D.	Because one cannot find employment.

E.	All of the above.

Human capital refers to

A.	the amount of financial capital owned by firm owners.

B.	the amount of financial capital owned by workers.

C.	the amount of physical capital a firm owns (per worker it employs).

D.	the unique set of abilities and skills embedded in workers.

E.	the amount of physical capital produced by labor.

The social rate of return to schooling

A.	includes all private benefits to schooling.

B.	includes the signaling benefits to schooling.

C.	includes the increase in national income resulting from education.

D.	does not take into account the costs of education.

E.	are always well defined.

Which group of workers tends to have the highest unemployment rate among high school dropouts?

A.

Men

B.

Women

C.

Blacks

D.

Hispanics

E.

Whites