Question_Doc13_15Dec_4th

Question # 00005662 Posted By: smartwriter Updated on: 12/22/2013 01:56 PM Due on: 12/31/2013
Subject Business Topic General Business Tutorials:
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26)The regular earnings profile of an individual throughout his or her lifetime is A) the Lorenz curve.

B) the age-earnings cycle. C) wealth.

D) income-in-kind.

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27)Which of the following statements are correct about the age-earnings cycle? A) Earnings generally increase up till age 30 and then steadily decrease.

B) Earnings increase throughout a prison's lifetime until they reach retirement.

C) Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity.

D) Since every person is different we can reach no general conclusions about the age-earnings cycle.

28) The earnings of most people

A)increase steadily until retirement.

B)increase with age until around age 50 due to increased experience, training, and hours worked.

C)increase with age until around age 40 due to increased experience and hours worked.

D)increase with age until around age 60 due to increased experience, training, and hours worked, then level off as hours worked levels off.

29)Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be

A) equal because all have the same profile.

B) equal because incomes and wealth levels must then be the same. C) unequal because other sources of income will differ.

D) unequal because incomes differ by age.

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30)One reason earnings tend to fall before retirement age is that

A)the experience of people is no longer valuable after they are 50 or 55.

B)people tend to reduce the number of hours they work after age 50.

C)people are retiring earlier.

D)firms discriminate against older workers.

Answer: B

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31)Refer to the above figure. Which of the graphs are consistent with the age-earnings profile? A) Panel A

B) Panel B C) Panel C D) Panel D

32)In a competitive economy, workers will be paid according to their

A)status.

B)age.

C)marginal productivity.

D)need.

33)Which of the following is not a determinant of an individual's marginal product? A) talent

B) money income C) experience

D) educational level

34)Which of the following sources of productivity is the most difficult to acquire? A) education

B) experience C) talent

D) training

35)The return on human capital

A)tends to be much greater than the return on physical capital.

B)tends to be much lower than the return on physical capital.

C)is similar to the return on physical capital.

D)cannot be related to the return on physical capital since human capital and physical capital are so different.

36) The main cost of a college education is

A)tuition if one goes to a private college and room and board if one goes to a public college.

B)dependent upon whether one's parents pay for the college or not.

C)the lack of practical experience from spending time in college.

D)the opportunity cost of not working.

37) When measuring the benefits from investing in human capital

A)the only benefits come from the increase in salary because of going to school.

B)in addition to the monetary benefits, the benefit from expanding horizons should be included.

C)we must include the costs of tuition and books but not the money made from part-time jobs.

D)we must include the foregone earnings in the benefit calculation.

38)Inheritance is responsible for about ________ percent of the income inequality in the United States.

A) 10 B) 25 C) 40 D) 60

39)Economic discrimination exists when

A)there is an unequal distribution of income in a country.

B)both income and wealth are unequally distributed in a country.

C)there is unequal access to education.

D)workers with the same marginal revenue products are paid different wages.

40) Economic discrimination against minorities exists when

A)minorities have less education and training than whites.

B)minorities are paid less than whites on average.

C)minorities are paid less than whites with the same education, experience, and training.

D)minorities are in different occupations than whites.

41)Unequal pay that is caused by economic discrimination will be due to A) a noneconomic factor.

B) differences in the marginal revenue product. C) a monopolistic labor market.

D) difference in human capital.

42)Which of the following is a reason for economic discrimination to occur? A) differences in access to education

B) differences in gender

C) differences in the quality of education

D) barriers to entry in higher-paying occupations

43)The age-earnings profile for most people indicates

A)earnings rise continually until a person retires.

B)earnings initially decline and then rise continually until retirement.

C)that when you adjust for inflation, earnings are constant throughout the entire workplace experience.

D)earnings rise until the age of about 50 and then begin to fall until retirement.

44) Which of the following is NOT considered a determinant of income differences?

A)productivity

B)age

C)discrimination

D)equity or fairness

45)Which of the following does NOT contribute to the marginal productivity of workers? A) discrimination

B) talent

C) experience D) education

46)Inheritance accounts for about

A)5 percent of income inequality.

B)10 percent of income inequality.

C)15 percent of income inequality.

D)30 percent of income inequality.

47)Which of the following would NOT be considered a determinant of marginal productivity? A) talent

B) gender

C) experience D) training

48)Determinants of income differences include all of the following EXCEPT

A)age.

B)marginal productivity.

C)moral hazard.

D)discrimination.

49)Typically, the major cost of a college education is A) tuition.

B) books.

C) foregone income. D) housing.

50)Determinants of the marginal productivity of labor include all of the following EXCEPT A) talent.

B) education. C) experience. D) location.

Answer: D

51)Going to college to get more knowledge and skills is considered to be an increase in

A)physical capital.

B)consumption.

C)human capital.

D)net exports.

52) All of the following lead to a difference in income EXCEPT

A)sales tax.

B)discrimination.

C)the age-earnings cycle.

D)marginal productivity.

53)On average the productivity of an individual usually peaks when the individual is about A) 20.

B) 30. C) 50. D) 60.

54)If a goal of a nation's residents is to increase marginal productivity, they should increase A) expenditures on education.

B) the inheritance tax. C) exports.

D) the marginal propensity to consume.

55)All of the following contribute to income inequality EXCEPT

A)differences in education and training.

B)differences in job tastes.

C)differences in talent.

D)government transfer programs.

56) The typical age-earnings cycle shows that

A)there is a positive relationship between age and earnings that eventually turns into a negative relationship.

B)there is a constant positive relationship between age and earnings.

C)there is a constant negative relationship between age and earnings.

D)there is no relationship between age and earnings.

57)The age-earnings cycle is an earnings profile of an individual throughout the person's lifetime. The profile shows that

A) earnings usually peak at age 25 and then decline.

B) earnings gradually rise until they peak around age 50. C) earnings and age have no particular correlation.

D) younger workers have the most productivity.

58)The opportunity cost of going to college for a student receiving a scholarship

A)is the income that she would have earned if she did not go to college.

B)is the risk of dropping out.

C)is the food and living expenses that she has to purchase while in college.

D)is zero because she does not have to pay tuition.

59)Why doesn't the age-earning cycle continuously increase until retirement age? Answer: The typical worker sees a decline in earnings as he or she approaches retirement

60)What is the age-earnings cycle? What is the typical age-earnings profile for a U.S. resident?

61)Earnings usually reflect a person's productivity. What are factors that cause differences in productivity across people so that earnings differ too?

62)"The typical age-earning cycle provides evidence of economic discrimination by age." Do you agree or disagree? Why?

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