12 The upward sloping portion of the average workers ageearn

12. The upward sloping portion of the average worker\'s age-earnings profile can bie explained as arising from: (a) the practice of companies to reward additional pay and promotions to workers on the basis of years of seniority. (b) the fact that workers, on average, build up a greater stock of human capital through the process of on-the-job training (at least up to a certain age). the worker\'s compensation until later in their life. (d) all of the above 13. Human capital theory predicts that women who plan on interrupting their work career will: (a) have a steeper age/earnings profile than women who do not. (b) be more likely to attend college than women who do not. (c) be given less specific OJT by firms than women who do not. (d) be more likely to be hired into a job in the firm\'s internal labor market than women who do not. 14. Which of the following factors causes the officially defined unemployment rate to overstate the economic costs resulting from unemployment? (a) the unemployment rate excludes discouraged workers (b) the unemployment rate does not include persons underemployed. (c) certain income transfer programs require that recipients register for work. (d) all of the above

Solution

12. The upward sloping portion of the average worker\'s age earning profile can be explained as arising from:

The correct answer will be option number (d) all the above.

Generally the age-earning profile is upward and concave. Senior workers earn more because they invest less. The companies also pays more to the seniors. Also they became an asset because of their experience and seniority. The earning increases more faster for those who are educated. Also they get a handsome amount at the retirement as the benefit which motives them to work more.

13. Human capital theory predicts that women who plan on interrupting their work career will:

The correct answer will be option no. (c) be given less specific OJT by firms than women who do not.

Those who are regularily interrupting their work career will not provided by specific on the job training. OJT is provided to those people who are useful only at the firm where is aquired. Less specific training or general training will be provided those who are interrupting their work career and can be adopted by all firms once hired.

14. Which of the following factors causes the officially defined unemployment rate to overstate the economic costs resulting from unemployment.

The correct answer will be option number (c) certain income transfer programs require that recipients register for work.

Dishonesty may overstate the unemployment.