Question

1. If a two-person household moves from Miami to Atlanta, which of the following can describe the household?

A.	Both members of the households are tied movers.

B.	One member of the household is a tied stayer.

C.	One member of the household is a tied mover while the other is a tied stayer.

D.	Neither member of the household is a tied mover.

E.	Neither member of the household is a tied stayer.

2. A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?  

A.	Yes, because they would earn $1,550 in Tampa but only $700 in Chicago.

B.	Yes, because they receive a net gain of $150 by moving to Tampa.

C.	Yes, because the joint cost of moving ($900) exceed what they could earn in Chicago ($700).

D.	No, because they would lose $50 by moving to Tampa when all benefits and costs are taken into account.

E.	No, because neither person would choose to move to Tampa on their own.

3. When a firm pays higher wages, it is likely that doing so will

A.	increase turnover.

B.	lower the firm's ability to attract high-skill workers.

C.	encourage workers to stay on the job for a long time.

D.	decrease worker utility.

E.	decrease the quality of the potential worker pool.

4. The standard model of geographic migration suggests:

A.	Migration occurs when there is a good chance that a worker will gain back his costs of moving.

B.	Increases in migration costs reduces the gains to migration.

C.	Improvements in economic opportunities in the current region of residence discourage migration.

D.	Improvements in economic opportunities in a possible region of residence encourage migration.

E.	All of the above statements are true.

5. Which of the following is a sign of a well-functioning labor market?

A.	A high degree of labor mobility (job losses and job gains).

B.	A constant unemployment rate.

C.	Equal pay for all workers.

D.	Equal pay in all regions.

E.	All workers have a college education.

Answer 1

Answer1.

option C - One member of the household is a tied mover while the other is a tied stayer.

Explanation - ( Tied Mover - A person who moves with the partner even though the persons employment is better at the current location, Tied Stayer- A person who sacrifice better income opportunities elsewhere partner is in much better position in current location)

Answer2.

option A. Yes, because they would earn $1,550 in Tampa but only $700 in Chicago.

Answer3

option C - encourage workers to stay on the job for a long time.

Answer4.

option C - Improvements in economic opportunities in the current region of residence discourage migration.