BUEC 280
Summer 1997
D. Maki
                    MIDTERM EXAMINATION

Instructions:  There are 15 questions on this examination,
all equally weighted.  Answer all questions.  For each
question, define the concept in upper case, and briefly
answer the question asked.

1.  What is the implication of SIGNALLING THEORY for the
economics of education?

2.  What was the main effect of the POINT SYSTEM on Canadian
immigrant flows?

3.  What has happened to the LABOUR FORCE PARTICIPATION RATE
of women aged 20-24 years in the last 20 years?

4.  Who pays for GENERAL TRAINING, the employer or the
employee?

5.  What does RISK AVERSION have to do with implicit
contracts?

6.  What does LIFE CYCLE THEORY predict about labour supply?

7.  What is the impact of the "IMPORTANCE OF BEINT
UNIMPORTANT" on wages?

8.  Why is the labour demand curve more ELASTIC in the long-
run than in the short-run?

9.  What is the theoretical impact of the OLD AGE SECURITY
program on the average retirement age?

10.  What does CLIFF VESTING have to do with on-the-job
training?

11.  In calculating INTERNAL RATES OF RETURN to education,
why are before-tax earnings used sometimes and after-tax
earnings at other times?

12.  What does SECTORAL BARGAINING have to do with
Starbucks?

13.  What causes a BACKWARD BENDING SUPPLY CURVE of labour?

14.  Why is the PARTIAL EQUILIBRIUM effect of immigrants on
indigenous workers negative?

15.  What is the implication for employers if INCENTIVE
SCHEMES simply sort workers?