ECO 361 Final Exam

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Published on 31 Jan 2019
School
Miami University
Department
Economics
Course
ECO 361
Professor
ECO361: LABOR ECONOMICS
FINAL EXAMINATION
DECEMBER 15, 2008
Prof. Bill Even
DIRECTIONS.
The exam contains a mix of short answer and essay questions. Your answers to the 13 short
answer portion of the exam (3 points each) should be listed on the first page of your bluebook,
with answers to the essay questions following.
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Eco361, Fall 2008, Prof. Bill Even
Final Examination
1. Based upon the economic model of migration, we would predict that a worker would be more
likely to move to another location for a new job if:
a. Interest rates are lower
b. The worker has a longer expected work-life (i.e. plans to retire at a later age).
c. There is not a second earner in the family.
d. All of the above
2. The majority of legal immigrants into the U.S. over the past several years are granted
admission based upon:
a. Family sponsorship (i.e. a relative to a U.S. citizen)
b. Employment based preferences (i.e. “special skills”)
c. Diversity based programs (i.e. admission because the person comes from an
underrepresented group)
d. Political refugees
3. Since 2000, the largest share of legal immigrants into the U.S. came from which region?
a. Africa
b. Asia
c. Europe
d. North America (excluding the U.S.)
4. Suppose that immigration into the U.S. is expanded. For workers that are gross substitutes to
the immigrant labor, we should expect to see especially large decreases in wages for natives in
a. labor intensive industries since labor demand will be elastic in those industries.
b. labor intensive industries since labor demand will be inelastic in those industries.
c. capital intensive industries since labor demand will be inelastic in those industries
d. capital intensive industries since labor demand will be elastic in those industries
5. Suppose that immigration into the U.S. is expanded. For workers that are gross substitutes to
the immigrant labor, we should expect to see especially large decreases in wages for natives in
industries where:
a. labor supply is very elastic or labor demand is very elastic
b. labor supply is very elastic or labor demand is very inelastic
c. labor supply is very inelastic or labor demand is very elastic
d. labor supply is very inelastic or labor demand is very inelastic
6. Increased immigration will lead to:
a. lower wages and employment for all native-born workers
b. lower wages and employment for native-born workers who are gross complements to the
immigrants, but higher wages and employment for native-born workers who are gross
substitutes to the immigrants.
c. higher wages and employment for native-born workers who are gross complements to
the immigrants, but lower wages and employment for native-born workers who are gross
substitutes to the immigrants.
d. higher wages and employment for all native-born workers.
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Eco361, Fall 2008, Prof. Bill Even
Final Examination
7. In a monopsonistic model of labor market discrimination, workers with a higher cost of
moving have more
a. elastic labor supply and are paid lower wages than workers with high moving costs.
b. inelastic labor supply and are paid lower wages than workers with high moving costs.
c. elastic labor supply and are paid higher wages than workers with high moving costs.
d. inelastic labor supply and are paid higher wages than workers with high moving costs.
8. Suppose that a firm pays an efficiency wage. Other things being the same, we should expect
that the size of the efficiency wage premiuim would fall if:
a. the cost of monitoring workers rises
b. the cost of monitoring workers falls.
c. the value workers place on cheating (or shirking) rises.
d. either a or c occurs
e. either b or c occurs.
9. Based on the information presented in class, the ratio of female to male earnings in the U.S.
a. has been rising over the past 40 years.
b. is lower among full-time workers than among all workers.
c. Was below .5 in the late 1990s for full-time workers.
d. All of the above
10. Which of the following have contributed to greater
a. Increases in the wage premium for education
wage differences between men and
women over the past 20 years?
b. Increases in the wage premium for experience
c. Increases in the wages paid in “male” jobs relative to those in “female” jobs
d. All of of the above.
e. None of the above.
11. Economists frequently argue that if a firm discriminates against minorities, the firm will pay
for their discriminatory behavior by reduced profits. Which of the following sources of wage
discrimination could actually increase the firm’s profits?
a. Customer discrimination
b. Statistical discrimination
c. Monopsonistic discrimination
d. All of the above
e. None of the above.
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