Question

1. Which of the following is least likely to affect the net gain to migration?

A.	An improvement in economic opportunities in the destination state.

B.	An improvement in economic opportunities in the source state.

C.	An increase in migration costs.

D.	Changing one's preferences for living in different places.

E.	Government spending.

2. Variation in wages across individuals is called

A.	wage dispersion.

B.	the mean wage.

C.	the Gini coefficient.

D.	the perfect-equality Lorenz curve.

E.	the positively-skewed wage distribution.

3. The positive correlation between ability and human capital investments "stretches out" wages in the population, generating what?

A.	A positively skewed wage distribution.

B.	A negatively skewed wage distribution.

C.	An inconsistent wage distribution.

D.	A uniform wage distribution.

E.	A symmetric wage distribution.

4. An approximate Lorenz curve shows

A.	the maxium and minimum wage gaps.

B.	the relationship between income and tax revenue.

C.	the share of income received by age group.

D.	the relationship between income and earnings potential.

E.	the cumulative share of income earned by quintiles of households.

5. Higher values of the Gini coefficient are associated with

A.	greater education inequality.

B.	greater income inequality.

C.	less income inequality.

D.	greater labor mobility.

Answer 1

1. Government spending is least likely to affect the net gain to migration which is positive according to the human-capital model.

Answer: option E

2. Variation in wages across individuals is called wage dispersion.

Answer: option A

3. The positive correlation between ability and human capital investments stretches out wages in the population, generating a positively skewed wage distribution.

Answer: option A

4. An approximate Lorenz curve shows the cumulative share of income earned by quintiles of households.

Answer: option E

5. Higher values of the Gini coefficient are associated with greater income inequality.

Answer: option B