Question 1

According to the U.S.Congressional Budget Office,immigrants in the United States:

Accepted Answer

Immigrants in the United States are less educated on average than current residents, according to data from the U.S. Congressional Budget Office. This reflects the diverse backgrounds of immigrants, many of whom come from countries with lower access to education compared to the U.S.

Question 2

Using a graph,explain the employment effects of a binding minimum wage.Who benefits,who loses,and how large are these effects?

Accepted Answer

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Question 3

Consider an industry that was initially employing both male and female workers.If some of the firms in this industry decide to discriminate against the male workers,what would be the most immediate impact on the labor market?

Accepted Answer

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Question 4

Provide a self-interested explanation for why labor unions spend a lot of time and money lobbying for increases in minimum wage mandates and for legislated "living wage" ordinances even though their members earn far more than the proposed wages.

Accepted Answer

The answer of Provide a self-interested explanation for why labor...

Question 5

Which of the following best describes wage discrimination?

Accepted Answer

Wage discrimination occurs when workers who have equal expected productive talents are paid differently based on characteristics such as race, gender, age, or ethnicity. Choices A, B, and C do not adequately describe wage discrimination.

Question 6

Explain graphically that a payroll tax imposed by the government either on the employers or on the employees will have a similar impact.

Accepted Answer

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Question 7

What is the long run effect of a pay-as-you-go Social Security program on the gross domestic product [GDP] of a country?

Accepted Answer

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Question 8

Use the following figure to answer the question : Figure 18-3 : 
shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. 
-Refer to Figure 18-3.The increase in the income of the capital owners in the country,due to immigration,is represented by the area:

Accepted Answer

The increase in the income of the capital owners is represented by the area wACw', which is the difference between the original equilibrium wage rate (w) and the new equilibrium wage rate (w') after immigration. Area ABC represents the deadweight loss or loss of social welfare due to immigration, while area ABCE represents the gain in total surplus due to immigration.

Question 9

Suppose the market wage of nurses is raised from $14 an hour to $18 an hour because of a comparable-worth program,which aims to equalize the wages earned by men and women for similar jobs.Which of the following would result from this policy?

Accepted Answer

Raising the wage of nurses from $14 to $18 an hour would likely increase the supply of individuals willing to work as nurses while potentially decreasing the quantity of nurses that employers are willing to hire at the higher wage, leading to a surplus of nurses.

Question 10

A recent study investigating discrimination in hiring found that 20 percent of the employers in the sample discriminated against African Americans and 7 percent discriminated against whites.If the sample of firms is representative of the population as a whole,it can be predicted that:

Accepted Answer

The study found that 20 percent of employers discriminated against African Americans and 7 percent discriminated against whites. This does not necessarily mean that African Americans will earn more than whites, as discrimination can occur in various forms, such as lower wages, fewer job offers, or fewer opportunities for promotion. It also does not mean that every firm in the population discriminates at this rate. Therefore, equally qualified African Americans and whites will likely earn the same on average, but the proportion of African Americans to whites may vary across firms.

Question 11

Discrimination in hiring practices is influenced by all of the following factors,except:

Accepted Answer

Discrimination in hiring practices is not influenced by the minimum wage. The other factors listed are all factors that can impact discrimination in hiring.

Question 12

Use the following figure to answer the question : Figure 18-3 : 
shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. 
-Refer to Figure 18-3.Post immigration the earnings of the native laborers in the country declines by the area:

Accepted Answer

The correct area representing the decline in earnings of the native laborers post-immigration is the area under the original wage level (w) and above the new wage level (w'), between the original quantity of labor (L) and the new quantity of labor (L'). This is represented by the trapezoid wABw'.

Question 13

What determines who bears the burden of the social security tax?

Accepted Answer

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Question 14

Which of the following is a major economic impact of immigration in the U.S.?

Accepted Answer

Immigration increases the labor supply in the U.S., which can have a positive impact on the economy as it often leads to increased productivity and economic growth. It can also help fill labor shortages in certain industries and regions.

Question 15

Which of the following is not a predictable result of a refusal by a small number of employers to hire African Americans?

Accepted Answer

The answer of Which of the following is not a...

Question 16

Assume that initially employers do not discriminate against women.If one third of all employers,accounting for one-third of all employment,begin to discriminate by just hiring men,then:

Accepted Answer

Employment patterns for men and women will change due to the discrimination by one-third of employers, but wage rates will not necessarily change because the supply and demand for labor overall remain the same; only the distribution of opportunities between men and women is affected.

Question 17

Discrimination might exist in a labor market at times,but it is not likely to last in the long run because:

Accepted Answer

Discrimination in the labor market may exist in the short run, but in the long run, costs are imposed on discriminators, such as reduced profits, decreased productivity, and lower-quality hiring choices. Over time, these costs make discrimination unsustainable and self-defeating. Therefore, option B, which states that costs are imposed on discriminators, is the correct answer. Option A is incorrect because labor supply is not perfectly inelastic, as workers can choose to enter or leave the labor market. Option C is incorrect because discrimination is complex and multifaceted, making it difficult to completely eliminate it. Option D is incorrect because government intervention alone does not always increase the cost of discrimination, but rather can increase the cost of compliance for all employers.

Question 18

Which of the following explains why immigration has led to an increase in income inequality in the U.S.?

Accepted Answer

Immigration has increased the supply of low-skilled labor, which has lowered the wages of the U.S. residents working in those sectors. At the same time, immigration has had a positive effect on highly skilled labor, which has increased the income of the capital owners. This has resulted in an increase in income inequality in the U.S.

Question 19

Use the following figure to answer the question : Figure 18-3 : 
shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. 
-Refer to Figure 18-3.The total income of the residents of the country increases by the area _____ post immigration.

Accepted Answer

The total income of the residents of the country increases by the area ABC post immigration.

Question 20

Which of the following is not likely to contribute to wage disparity between men and women?

Accepted Answer

An increase in technology-related employment would not contribute to wage disparity between men and women as it is a neutral factor that affects both genders equally. The other options listed - differences in employment experience, primary care responsibilities for family, and differences in the average number of hours worked per week - are all factors that have been shown to contribute to the wage gap.

Quiz 18: Using Input Market Analysis