Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

A. Exaggerate the inequality of living standards
B. Could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C. Understate the inequality of living standards
D. Accurately represent the true inequality of living standards

Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus ?

A. All of these answers
B. Libertarianism
C. Utilitarianism
D. None of these answers

Rank utilitarianism liberalism, and libertarianism in sequence from the political philosophy that would redistribute income the greatest to the one that would redistribute income the least?

A. utilitarianism, liberalism, libertarianism
B. all three political philosophies argue for similar degree of income redistribution
C. liberalism, libertarianism, utilitarianism
D. libertarianism liberalism, utilarianism

The substitution effect of higher wages suggests that as the wage rate increases ?

A. Leisure becomes less expensive and households buy more of it
B. Leisure becomes more expensive and households buy more of it
C. Leisure becomes more expensive and households buy less of it
D. Leisure becomes less expensive and households buy less of it.

If the income effect is smaller than the substitution effect, higher net wages will ?

A. Reduce the supply of labour.
B. Increase the demand for labour
C. Increase the supply of labour
D. Have no effect on the supply of labour

Differences in wages that result from differences in working conditions are known as ?

A. Occupational differentials
B. Search differentials
C. Job differentials.
D. Compensating differentials

In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

A. Total labour cost
B. The marginal product
C. The price of the product
D. The wage rate

The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?

A. Mpl + px
B. (mpl) (px)
C. Px/mpl
D. Mpl/px

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is ?

A. The rs500 weekly salary that he has forgone to search for another job
B. The rs500 weekly salary that he has forgone and the monetary costs incurred by continuing to search
C. Rs difference between the weekly salary he finally accepts and the rs500 weekly salary that he has forgone
D. Rs0, since he is currently unemployed

If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then ?

A. Wages of men will be higher but the marginal productivity of men will be lower than it otherwise would be
B. The wages of men will be lower but the marginal productivity of men will be higher than it otherwise would be
C. Both the wages and the marginal productivity of men will be lower than they otherwise would be
D. Both the wages and the marginal productivity of men will be higher than they otherwise would be