1. There are several assumptions that are the basis of the operation of the benchmark competitive labor market. Which of the following is not one of these assumptions? A. Wage rates are costlessly observable. B. All jobs are identical. C. There are no long-term contracts. D. Compensation is made up of wages and benefits. 2. In the benchmark competitive case, the firm will expand the hiring of employees until the marginal revenue product is A. less than the market wage rate B. equal to the market wage rate C. greater than the market wage rate. D. the square of the market wage rate. 3. Which of the following is a distinction between general and specific human capital? A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer B. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate C. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs. D. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem. 4. If a firm is inundated by qualified applicants when it advertises a job opening and the firm's quit rate is unusually low, then the firm is probably paying: A. below the market wage B. the market wage C. above the market wage. D. each worker its marginal revenue product.