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Focused topic practice

human capital MCQs

Practise focused human capital questions with marked answers for exam preparation and subject revision.

human capital Mcqs

1. By restricting labor supply a trade union can _____ and _______?
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A. increase the wage, lower employment

B. maintain the wage, lower employment

C. increase the wage, increase employment

D. maintain the wage, increase employment

2. Which of the following is not a reason why some workers are paid above the equilibrium wage ?
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A. efficiency wages

B. unions

C. beauty

D. minimum-wage laws

3. The marginal revenue product of capital is the ?
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A. change in companys share price

B. change in a companys balance sheet when it acquires new plant

C. additional value of output from using more capital

D. changing value of the capital stock

4. Which of the following statements regarding discrimination is true ?
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A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market

B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination

C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

D. Discrimination cannot exist in a competitive labor market

5. If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?
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A. coal miners must have greater human capital than others

B. we have observed a compensating differential

C. coal miners must be more attractive than other workers

D. we have evidence of discrimination against workers outside the coal mine

6. Which of the following is not part of a workers human capital ?
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A. all of these answers are parts of a workers human capital

B. education

C. experience

D. on the job training

E. effort

7. Efficiency wages are ____ that raise _____?
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A. high wages, productivity

B. high wages, employment

C. high wages, labor supply

D. low wages, employment

8. All of the following would tend to increase a workers wage except ?
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A. doing a job that is fun

B. Working the night shift

C. working harder

D. having a greater amount of natural ability

E. more education

9. If workers get a real wage increase this will likely ____ and _____?
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A. encourage the use of less capital, reduce demand for all inputs

B. encourage the use of less capital reduce demand for all inputs

C. encourage the use of more capital increase demand for all inputs

D. encourage the use of more capital in the long run, reduce demand for all inputs

10. A profit-maximizing firm will hire labour until _____ equals the _______?
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A. long run marginal revenue, long run marginal cost

B. labor output ratio, capital output ratio

C. marginal revenue, marginal cost

D. marginal cost of labor, marginal revenue product

11. Involuntary unemployment exists if workers ?
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A. will not work because the hours are anti-social

B. Are not prepared to move house to get the job

C. would work at the going wage but cant find jobs

D. will not work at the offered wage

12. Land will be allocated between competing uses so that ?
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A. the equilibrium rental rate equilibrium total demand with supply

B. housing gets priority

C. industry gets priority

D. farming gets priority

13. Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?
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A. decrease in the demand for unskilled workers are more poorly educated

B. increase in the number of unskilled workers available due to immigration into the UK.

C. increase in the number of unskilled workers available because workers are more poorly educated

D. decrease in the demand for unskilled workers because of increases in technology and increases in international trade

14. Which of the following is true regarding the earning of attractive versus unattractive workers ?
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A. Attractive people tend to earn less because attractive people are viewed as shallow and more self-absorbed and therefore, as less productive

B. Attractive people tend to earn less because attractive people usually have less human capital

C. Attractive people tend to earn more because attractive people usually have greater human capital

D. Attractive people tend to earn more because they may actually have a larger value of marginal product

15. Top footballers tend to earn more than lecturers because ?
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A. lecturers are lazy

B. the labor markets are imperfect

C. top footballers are relatively scarce in relation to lecturers

D. footballers give more entertainment

16. The difference between gross investment and net investment is ?
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A. dwellings

B. inventories

C. productive investment

D. depreciation of the existing capital stock

17. The opportunity cost of acquiring education is ?
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A. the earnings foregone

B. course fees

C. course fees and living expenses

D. Course fees living expenses and textbook

18. Which of the following professionals is most likely to be able to generate the income of a superstar ?
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A. the best writer

B. the best professor

C. the best medical doctor

D. The best accountant

E. All of these answers participate in markets that could generate a superstar

19. According to the signaling view of the education ?
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A. can make any worker into a superstar

B. only helps firms sort workers into high ability and low-ability workers

C. increases human capital and the wages of workers

D. reduces the wage gap between high-skill and low-skill workers.

20. Which of the following could result in women being paid less than men ?
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A. women obtaining less human capital because they dont plan to work continuously to the age of retirement

B. all of these answers

C. women preferring to work in pleasant clean safe work places

D. customers preferring to deal with men

E. Women entering and leaving the labour force to care for children

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