Question 1Under the pure signaling model, the social benefit associated with education is:A.larger t

Question 1Under the pure signaling model, the social benefit associated with education is:A.larger than the private benefit.B.equal to the private benefit.C.zero.D.None of the above is correct.4 points Question 2Human capital may be increased by investments in:A.education.B.training.C.health care.D.All of the above are correct.4 points Question 3The existence of non-pecuniary benefits from education might cause the conventionally measured rate of return to education to:A.overstate the rate of return to education.B.understate the rate of return to education.C.appropriately measure the rate of return to education.D.overstate the rate of return for college graduates and understate it for high school graduates.4 points Question 4In recent decades, the average level of skills and training possessed by immigrant workers has:A.increased.B.decreased.C.remained the same as in earlier decades.4 points Question 5Worker turnover caused by voluntary job quits rises when:A.real GDP rises.B.real GDP falls.C.a Republican President is in office.D.None of the above is correct.4 points Question 6Economic theory predicts that individuals will acquire more education only if the:A.present value of the additional benefits exceeds the present value of the additional costs.B.present value of the additional benefits is less than the present value of the additional costs.C.benefits in the current and each future year exceed the costs in each of those years.D.None of the above is correct.4 points Question 7Firms are expected to have more monopsony power when:A.the cost of mobility is low.B.the cost of mobility is high.C.workers have perfect information about alternative wage offers.D.None of the above is correct.4 points Question 8Most geographical migration takes place:A.over relatively large distances.B.over relatively short distances.C.in February.D.None of the above is correct.4 points Question 9Which of the following will not increase worker mobility?A.a larger variation in income across occupations and across geographical regions.B.higher costs of moving.C.a younger population.D.All of the above are correct.4 points Question 10Immigration will result in higher wage rates in those labor markets in which:A.labor demand rises by more than labor supply.B.labor demand rises by less than labor supply.C.labor demand falls by less than labor supply rises.D.labor demand falls by more than labor supply rises.E.None of the above is correct.4 points Question 11Assuming that wages in an alternative location are expected to always be higher than wages in the current location, an increase in the interest rate is expected to cause the net benefit associated with mobility to:A.increase.B.decrease.C.remain unchanged.D.change in an unpredictable manner.4 points Question 12The existence of ability bias suggest that conventional estimates of the rate of return to education will:A.overstate the rate of return to education.B.understate the rate of return to education.C.appropriately measure the rate of return to education.D.overstate the rate of return for college graduates and understate it for high school graduates.4 points Question 13The economic argument for public subsidies for education rely on:A.the higher earnings that are received by more highly educated individuals.B.the psychic benefits that are received by college graduates.C.the positive externalities associated with education.D.All of the above are correct.E.None of the above is correct.4 points Question 14Under the signaling model, those individuals who choose to attend college have _________ associated with college attendance than those who terminate their education at the high school level.A.lower costsB.higher costsC.higher benefitsD.lower benefits4 points Question 15An increase in the interest rate is expected to cause the number of people attending college to:A.rise.B.fall.C.remain unchanged.D.change in an unpredictable manner.E.None of the above is correct.4 points Question 16Economic theory predicts that immigration:A.reduces domestic employment.B.raises domestic employment.C.may either increase or decrease domestic employment.D.has no effect on domestic employment.4 points Question 17Which of the following is least likely to be a cost of a college education?A.tuition.B.books.C.forgone earnings.D.psychic costs.E.room and board fees.4 points Question 18Current U.S. immigration law strongly favors:A.only the most highly educated immigrants.B.only young workers.C.relatives of individuals who live in the U.S.D.None of the above is correct.4 points Question 19Ceteris paribus, an increase in the earnings of high school graduates would be expected to cause the number of people attending college to:A.increase.B.decrease.C.remain unchanged.D.change in an unpredictable manner.4 points Question 20Under the cobweb model, the labor supply curve is _____ in the short run and ____ in the long run.A.vertical, upward slopingB.upward sloping, verticalC.upward sloping, upward slopingD.vertical, vertical4 points Question 21Empirical evidence suggests that GDP per capita _____ as a result of immigration.A.rises.B.falls.C.does not change.4 points Question 22The cobweb model suggests that employment cycles are most likely to occur in those labor markets in which:A.there are high educational requirements.B.there are low educational requirements.C.there is a lagged demand response.D.None of the above is correct.4 points Question 23Chain migration exists because it:A.is mandated by state laws.B.raises information costs.C.lowers the costs associated with migration.D.None of the above are correct.4 points Question 24Which of the following is a non-pecuniary benefit from education?A.a higher income.B.a more pleasant job.C.forgone earnings.D.None of the above is correct.4 points Question 25Immigrant workers are more likely to be relatively highly skilled when:A.the distribution of earnings in foreign countries is more equal than in the U.S.B.the distribution of earnings in foreign countries is less equal than in the U.S.C.there are no barriers to immigration.D.None of the above is correct.4 points