human capital MCQs – Page 2

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

human capital Mcqs

21. the cost of using capital services is the ?
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A. wage rate of capital

B. rental rate for capital

C. marginal capital cost

D. interest charges

22. A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?
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A. different levels of job experience

B. different preferences for the type of work they are willing to do

C. different levels of education

D. all of these answers are correct

23. In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
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A. the government

B. the employer

C. the customer

D. All of these answers could be source of a persistent discriminatory wage differential

24. Which of the following explanations of wage differentials is not likely to be true ?
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A. Men have more human capital than women

B. None of the above

C. Men have more job experience than women

D. Employers in competitive markets are bigots

25. In the short run, the supply of capital is ________ and in the long run will depend on _______?
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A. fixed, rental rate of capital

B. variable, interest rates

C. variable, technology

D. fixed, expectations

26. The participation rate in the labour force is affected by ?
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A. lower non-labour income

B. all of the above

C. lower fixed costs of working

D. changes in tastes between leisure and work

E. higher real wages

27. Which of the following is likely to generate a compensating differential ?
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A. One employee is willing to work the nightshift while another is not.

B. One employee is more attractive than another

C. All of these answers generated

D. One employee works harder than another

E. One employee is more educated than another

28. In the West Women and non-whites on average receive lower incomes than white men because ?
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A. all of the above

B. firms are reluctant to invest in training

C. educational disadvantage

D. they tend to work in relatively unskilled jobs

29. Human capital can be described as ?
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A. the tools used by workers to enhance productivity

B. the stock of expertise accumulated by a worker

C. a person inherited ability

D. education

30. Skilled labor is relatively scarce because ?
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A. it is costly to acquire human capital

B. too few student places in higher education

C. teachers salaries are too low

D. there are too few teachers

31. Different capital intensity in different industries is mainly explained by _______ and ________?
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A. technology, the ease of factor substitution

B. patents, skill shortages

C. government grants, international competition

D. wage differentials, skill levels

32. Competitive markets tend to ?
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A. reduce labour market discrimination because non-discrimination firms will employ cheaper labour earn more profits and drive discriminating firms out of the market

B. increase labour market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination

C. have no impact on labour market discrimination

D. Increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market

33. The downward sloping marginal physical product of labor is the firms ?
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A. ginal revenue product of labor

B. marginal cost of labour

C. Supply of labor

D. Short-run demand curve for labor

34. The value of an asset depends upon ?
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A. its depreciation

B. its scrap values

C. the cost of loans

D. the present value of the future stream of income it can earn

35. Unions achieve a higher wage differential the more _____ and the more ______?
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A. the economy is growing, people prefer leisure

B. inelastic the demand for labour, they can restrict the supply of labour

C. members they have, aggressive they behave

D. the productivity is growing vacancies exist

36. According to the human capital view of education ?
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A. increases human capital and the wages of workers

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

C. can make any worker into a superstar

D. has no impact on the human capital of workers?

37. In order for a market to support superstars it must have which of the following characteristics ?
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A. It must be involved in professional athletics

B. Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost

C. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity

D. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product

38. It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
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A. sex

B. race

C. age

D. productivity

39. If two jobs require the same amount of skills and experience the job that pays the most is most likely to be the one that is ?
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A. fun

B. safe

C. unpleasant

D. all these answers

E. easy

40. The most important source of wage differentials are ?
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A. unionization

B. regional variation

C. relative danger

D. skills

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