Multiple Choice (3 points each) 1. Since a lottery draft selects individuals with opportunity costs randomly drawn from the general population, whereas an all-volunteer military enlists only those with opportunity costs less than the military wage,... a. the true economic costs of a draft exceed that of a voluntary system. b. the taxpayer costs of a draft exceed that of a voluntary system. c. the true economic costs of a draft are less than that of a voluntary system. d. the true economic costs of a draft equal the taxpayer costs of a voluntary system. 2. The public provision of a good that is a substitute for a private good will a. necessarily reduce wage rates of government workers. b. necessarily reduce work effort. c. likely decrease labor demand in the private sector. d. likely increase labor demand in the private sector. 3. Suppose the aggregate labor supply curve slopes upward and the income tax rate is increased. Economic theory predicts that the employment of labor will ________ and the after-tax "take-home" wage will ________. a. not change; fall b. not change; not change c. fall; fall d. fall; not change 4. All else equal, a worker is less likely to move, a. the smaller the wage differential between the destination and the origin. b. the lower the discount rate. c. the greater the number of years one expects to remain in the new location. d. the lower the indirect costs of migrating. 5. According to Chetty et al. (2014) in "Where is the Land of Opportunity? The Geo