Since 1960, the U.S. ratio of labor income to total income has: A) been about 2.

ID: 1188000 • Letter: S

Question

Since 1960, the U.S. ratio of labor income to total income has:

A) been about 2.5 to 1.

B) been about 0.7.

C) increased steadily.

D) decreased steadily.

In a Cobbâ€“Douglas production function the marginal product of labor will increase if:

A) the quantity of labor increases.

B) the quantity of capital increases.

C) capital's share of output increases.

D) average labor productivity decreases.

Skill-biased technological change ______ the demand for high-skilled workers, while

the slowdown in the pace of educational advancement reduces the supply of skilled

workers, resulting in relatively _____ wages for skilled workers.

A) increases; higher

B) increases; lower

C) decreases; higher

D) decreases; lower

Estimates by Goldin and Katz indicate that the financial returns of a year of college

_____ between 1980 and 2005.

A) increased.

B) decreased.

C) did not change.

D) were negative.

All of the following are causes of structural unemployment except:

A) minimum-wage laws.

B) the monopoly power of unions.

C) unemployment insurance.

D) efficiency wages.

1.c

2.b

3.b

4.a