Question 1

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Accepted Answer

A)   the theory of efficiency wages holds true for that market.
B)   there is a powerful labor union representing workers in that market.
C)   workers are largely unskilled and/or inexperienced and minimum-wage laws are effectively holding wages up in that market.
D)   All of the above are correct.E) B) and D)
F) A) and C)

Question 2

If men,on average,earn 20 percent more than women in a particular occupation,

Accepted Answer

A)   this is clear evidence of discrimination.
B)   some of this differential could be due to differences in educational levels.
C)   some of this differential could be due to differences in human capital.
D)   Both b and c are correct.E) All of the above
F) A) and C)

Question 3

According to evidence provided by the U.S.government,the median black

Accepted Answer

A)   woman is paid roughly the same as the median white woman.
B)   woman is paid roughly the same as the median black man.
C)   man is paid 22 percent less than the median white man.
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 4

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on the night shift.The difference in pay is attributed to

Accepted Answer

A)   the marginal product of labor.
B)   the marginal product of capital.
C)   diminishing marginal returns.
D)   a compensating differential.E) A) and C)
F) B) and C)

Question 5

Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women;however,economists argue against this approach because they don't trust any of the statistics quoted by the politicians.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Accepted Answer

A)   labor market discrimination.
B)   self-selection of females into other occupations.
C)   cultural bias in primary and secondary education.
D)   inability of women to solve economics problems.E) All of the above
F) A) and C)

Question 7

Figure 19-2 
-Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then the employment level

Accepted Answer

A)   increases from 6,000 to 10,000.
B)   increases from 3,000 to 10,000.
C)   decreases from 10,000 to 3,000.
D)   decreases from 6,000 to 3,000.E) A) and C)
F) A) and D)

Question 8

Joan is a white 23-year-old female,and Marcia is a black 23-year-old female.Both Joan and Marica are economics majors,and they graduated from the same college in the same year with the same GPA.Joan and Marcia both got jobs at a brokerage firm after graduating from college.They both work equally hard.Joan earns $38,000 a year,and Marcia earns $30,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Joan has less human capital than Marcia.
B)   Joan receives a compensating wage differential that Marcia does not.
C)   Joan has been discriminated against because she is white.
D)   Marcia has been discriminated against because he is black.E) A) and B)
F) B) and C)

Question 9

A consensus view among economists regarding the possibility of labor-market discrimination is that

Accepted Answer

A)   most wage differences among groups are attributable to discrimination.
B)   many employers use compensating differentials to hide discriminatory practices.
C)   wage differences among groups are not sufficient by themselves to determine how much discrimination there is.
D)   all wage differences among groups are attributable to differences in human capital and compensating differentials.E) A) and D)
F) B) and C)

Question 10

Dr.Benson is regarded as,by far,the best dentist in his part of the country,yet his income is not significantly higher than the average income for a dentist in his area.In contrast,Bo Johnson,the best baseball player in that region,earns five times the average salary of all baseball players.The most likely explanation is that

Accepted Answer

A)   the widespread perception that Dr.Benson is a great dentist is,in fact,incorrect.
B)   the baseball players' union is more powerful than the professional association of dentists.
C)   Bo Johnson,unlike Dr.Benson,can provide his services to millions of people simultaneously.
D)   chance plays a role in determining people's incomes,resulting in earnings discrepancies that are hard to explain or justify.E) A) and B)
F) C) and D)

Question 11

That some schools direct females away from science and math courses is evidence of

Accepted Answer

A)   labor-market discrimination.
B)   discrimination that occurs prior to people entering the labor market.
C)   discrimination by customers.
D)   discrimination by employers.E) A) and C)
F) B) and C)

Question 12

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

Accepted Answer

A) True 
 B)False

Question 13

Store clerks are known to have low wages.This is likely to be reflect the fact that

Accepted Answer

A)   store clerk jobs are perceived to be relatively easy,thus attracting low-skill workers.
B)   store clerk jobs are perceived to be relatively difficult,thus attracting high-skill workers..
C)   many people perceive the job of store clerk as having significant risk of death on the job.
D)   store clerks are required to have a college degree.E) All of the above
F) None of the above

Question 14

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Accepted Answer

A)   higher wages,because jobs that involve pleasant work typically require more education than do jobs that involve unpleasant work.
B)   higher wages,because jobs that involve pleasant work typically require more well-developed personality skills than do jobs that involve unpleasant work.
C)   lower wages,because workers typically are not attracted to jobs that involve unpleasant work unless there is a monetary inducement.
D)   lower wages,because workers who take jobs that involve unpleasant work typically stay in those jobs for relatively long periods of time and accumulate significant experience.E) A) and C)
F) A) and B)

Question 15

Scenario 19-3
In the small town of Hamilton,Montana,there is a local hardware store called Eddy's Hardware.There are only two types of workers who apply for jobs at Eddy's Hardware: cowboys and farm boys.Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against cowboys.Eddy's Hardware denies the complaint and says the store is only trying to maximize profit.
-Refer to Scenario 19-3.Which of the following statements would strengthen the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)   Farm boys call in sick to work more often than cowboys.
B)   Cowboys are less educated than farm boys,on average.
C)   Farm boys' experience with hardware generally exceeds cowboys' experience with hardware.
D)   Many cowboys take six months per year off from work to compete in a rodeo circuit and therefore have less on-the-job experience with a hardware store.E) C) and D)
F) A) and D)

Question 16

Which of the following explains the vast differences in earnings in the United States?

Accepted Answer

A)   ability,effort,and chance
B)   compensating differentials
C)   physical attractiveness
D)   All of the above are correct.E) C) and D)
F) B) and C)

Question 17

Discrimination is usually not a profit-maximizing strategy.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is correct?

Accepted Answer

A)   The human-capital theory of education could be called a productivity-enhancing theory.
B)   The human-capital theory of education could be called a productivity-revealing theory.
C)   The signaling theory of education could be called a productivity-enhancing theory.
D)   The signaling theory of education has been disproved by Princeton University economist Alan Krueger.E) A) and B)
F) A) and C)

Question 19

Economists are skeptical that discrimination is employer driven because

Accepted Answer

A)   discrimination cannot exist in markets.
B)   employers are not really interested in maximizing profit.
C)   employers typically base wages paid on the prevailing market wage.
D)   holding productivity constant,a profit-maximizing employer will hire the cheapest labor available.E) A) and C)
F) A) and B)

Question 20

If the signaling theory of education is correct,

Accepted Answer

A)   workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
B)   additional years of formal schooling do not increase a worker's productivity.
C)   workers with more years of formal schooling are less likely to be affected by ability,effort,and chance.
D)   men are more likely to earn more than women because men are more likely to have graduated from college.E) A) and C)
F) B) and D)

Exam 19: Earnings and Discrimination

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then the employment level

Correct Answer
verified

Economists are skeptical that discrimination is employer driven because

Correct Answer
verified

Discrimination is usually not a profit-maximizing strategy.

Correct Answer
verified

According to evidence provided by the U.S.government,the median black

Correct Answer
verified

Which of the following explains the vast differences in earnings in the United States?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Store clerks are known to have low wages.This is likely to be reflect the fact that

Correct Answer
verified

If the signaling theory of education is correct,

Correct Answer
verified

That some schools direct females away from science and math courses is evidence of

Correct Answer
verified

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct Answer
verified

Correct Answer
verified

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on the night shift.The difference in pay is attributed to

Correct Answer
verified

If men,on average,earn 20 percent more than women in a particular occupation,

Correct Answer
verified

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Correct Answer
verified

Correct Answer
verified

Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women;however,economists argue against this approach because they don't trust any of the statistics quoted by the politicians.

Correct Answer
verified

Correct Answer
verified

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Correct Answer
verified

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Correct Answer
verified

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then the employment level

Correct AnswerverifiedShow Answer

Economists are skeptical that discrimination is employer driven because

Correct AnswerverifiedShow Answer

Discrimination is usually not a profit-maximizing strategy.

Correct AnswerverifiedShow Answer

According to evidence provided by the U.S.government,the median black

Correct AnswerverifiedShow Answer

Which of the following explains the vast differences in earnings in the United States?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Store clerks are known to have low wages.This is likely to be reflect the fact that

Correct AnswerverifiedShow Answer

If the signaling theory of education is correct,

Correct AnswerverifiedShow Answer

That some schools direct females away from science and math courses is evidence of

Correct AnswerverifiedShow Answer

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on the night shift.The difference in pay is attributed to

Correct AnswerverifiedShow Answer

If men,on average,earn 20 percent more than women in a particular occupation,

Correct AnswerverifiedShow Answer

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women;however,economists argue against this approach because they don't trust any of the statistics quoted by the politicians.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Correct AnswerverifiedShow Answer

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Correct AnswerverifiedShow Answer

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified