Assignment:
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Question 1) If labour markets were perfectly competitive,
A) all workers would achieve the same levels of education and experience.
B) discrimination could not create wage differentials.
C) all workers would eventually earn the same wage.
D) working conditions would be the same for all jobs.
E) wage differentials could still exist because of differences in workers and jobs.
Question 2) One possible reason for wage differentials is that
A) working conditions are the same for most jobs.
B) there is only a single national labour market.
C) there are competitive forces operating in labour markets.
D) discrimination affects labour-market outcomes.
E) workers have more-or-less equal skills.
Question 3) In terms of human capital, which of the following is the best example of an inherited skill?
A) a music teacher who can carry a tune for the school choir
B) a neurosurgeon who can perform brain surgery after many years of training
C) a salesman doubles his sales after taking a training course
D) a retail worker who is able to work overtime each week
E) a worker who exercises is healthier and therefore more productive
Question 4) Labour-market discrimination results in a
A) higher supply in discriminating occupations and a lower supply in non-discriminating occupations.
B) lower demand in all occupations.
C) higher demand in both occupations.
D) lower supply in all occupations.
E) lower supply in discriminating occupations and a higher supply in non-discriminating occupations.
Question 5) If a minimum wage is set above the free-market equilibrium wage in a competitive labour market, the labour market will experience an increase in wages and
A) there is an unpredictable effect on employment.
B) there will be no unemployment.
C) employment will remain the same.
D) employment will increase.
E) employment will decrease.
Question 6) The average union wage premium in Canada is
A) less than 10 percent.
B) between 30 and 50 percent.
C) more than 50 percent.
D) between 10 and 15 percent.
E) between 15 and 30 percent.