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Multiple Choice Quiz
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1

Labor mobility is driven by
A)workers' desires to improve their economic situation.
B)firms’ desires to hire more productive workers.
C)both (A) and (B).
D)neither (A) nor (B).
2

The human-capital model predicts that people move when
A)the net gain to migration is positive.
B)the present value of the earnings stream if the worker remains in the current location is less than the present value of the earnings stream if the worker moves.
C)the present value of the earnings stream if the worker remains in the current location is negative.
D)the present value of the earnings stream at the new location is positive if the worker moves.
3

Which of the following is a prediction of the human capital model?
A)An improvement in the economic opportunities available in the destination raises the likelihood that the worker will move.
B)An improvement in the employment opportunities at the current region of residence lowers the likelihood that the worker will move.
C)An increase in migration costs reduces the likelihood of a move.
D)All of the above.
4

A worker is more likely to move if she is
A)young.
B)educated.
C)a non-immigrant.
D)receiving government assistance.
E)both (A) and (B).
5

Repeat migration can occur
A)when workers are attempting to correct a mistake that resulted from making the decision to move under uncertainty.
B)when someone moves in order to take full advantage of their human-capital investment.
C)when someone has an adventurous spirit.
D)when moving costs are low.
E)all of the above.
6

The human capital model predicts that a family, comprised of a working husband and wife, only moves if
A)the sum of the private gains or losses to the husband and wife, including moving costs, are positive.
B)the private gains to the husband are positive.
C)the private gains to the wife are positive.
D)both (B) and (C).
E)all of the above.
7

The human capital model suggests that married, working couples
A)face family incentives that do not always coincide with personal incentives.
B)are always more likely to move than if they were single.
C)are always less likely to move than if they were single.
D)both (A) and (C).
E)none of the above.
8

A tied stayer is a spouse who
A)moves to a different locality when he or she would stay if single.
B)stays at the current locality when he or she would move if single.
C)stays at the current locality regardless of what is best for the family.
D)both (B) and (C).
E)none of the above.
9

Projecting earnings based on cross-sectional data when there are skill differences across cohorts can erroneously
A)indicate that immigrant earnings grow faster than those of native-born workers.
B)suggest that immigrant earnings overtake those of native-born workers.
C)both (A) and (B).
D)neither (A) nor (B).
10

Cohort effects could have occurred with regard to the U.S. immigration if
A)immigration policies changed from emphasizing skill requirements to emphasizing family reunification.
B)recent waves of immigrants, unlike past waves, have yet to experience the remigration of those migrants who are relatively unsuccessful in the U.S. labor markets.
C)both (A) and (B).
D)neither (A) nor (B).





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