Question 1

Which of the following professionals is most likely to generate the income of a superstar?

Accepted Answer

A)   the best teacher
B)   the best dentist
C)   the best author
D)   the best airplane pilotE) B) and C)
F) B) and D)

Question 2

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Accepted Answer

A)   a surplus of labor.
B)   no unemployment.
C)   an increase in the number of people employed.
D)   an decrease in the quantity of labor supplied.E) A) and D)
F) All of the above

Question 3

Karen is a black 21-year-old female,and Jessica is a black 41-year-old female.Both Karen and Jessica are accounting majors,and they graduated from the same college with the same GPA - Karen in 2008 and Jessica in 1988.Karen and Jessica are both financial advisers at the same mutual fund firm.Karen earns $45,000 a year,and Jessica earns $90,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Karen has more human capital than Jessica.
B)   Karen has less human capital than Jessica.
C)   Karen has been discriminated against because she is young.
D)   Jessica has been discriminated against because she is old.E) All of the above
F) C) and D)

Question 4

Jake and Harry each have 130 hours of college credit from Impressive University.Each has 30 hours of economics.Jake has a bachelor's degree,while Harry is 3 credits short of required physical education classes and therefore does not have a degree.Each of them has one year of experience as a market analyst for ABC Company.Assuming that the physical education class would not enhance Harry's job performance,if Jake earns a higher salary than Harry,the ABC Company may subscribe to the

Accepted Answer

A)   human capital theory.
B)   discrimination theory.
C)   compensating differential theory.
D)   signaling theory.E) A) and C)
F) B) and C)

Question 5

Which of the following is not an example of efficiency wages?

Accepted Answer

A)   More productive workers are paid more to reflect their higher output.
B)   Higher wages induce higher output from workers.
C)   Better quality applicants apply for jobs that pay above-equilibrium wages.
D)   Workers are less likely to leave jobs that pay above-equilibrium wages.E) All of the above
F) None of the above

Question 6

Figure 19-3
The manufacturing labor market. 
-Refer to Figure 19-3.Suppose the manufacturing labor market,which is non-unionized,is in equilibrium at a wage equal to $30.Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $38 per hour.Because of the union,

Accepted Answer

A)   10 people who were once employed are now unemployed.
B)   20 people who were once employed are now unemployed.
C)   40 people who were once employed are now unemployed.
D)   20 people who were once unemployed are now employed.E) B) and C)
F) None of the above

Question 7

Which of the following would not be considered human capital?

Accepted Answer

A)   the golf clubs a professional golfer uses to play golf
B)   the golf balls a professional golfer uses to play golf
C)   the device a golfer uses to accurately measure distances on a golf course
D)   none of the above would be considered human capitalE) C) and D)
F) B) and D)

Question 8

Other things equal,when the supply of workers is low,one would predict that market wages would be

Accepted Answer

A)   relatively high.
B)   relatively low.
C)   determined solely by factors that affect demand.
D)   determined outside the domain of economic theory.E) A) and B)
F) A) and C)

Question 9

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Accepted Answer

A)   in favor of the segregation laws because they lowered costs and increased profits.
B)   against the segregation laws because they increased costs and lowered profits.
C)   lobbied local governments to enact such laws because their customers were willing to pay more for service in order to maintain the segregation.
D)   concerned about the effects of smoking.Since blacks smoked more than whites,they were supportive of the segregation laws.E) A) and B)
F) All of the above

Question 10

Consider two groups of workers of equal skill level and experience: those who collect garbage and those who stuff envelopes with campaign fliers.Which group is likely to be paid more and why?

Accepted Answer

garbage co...

Question 11

List three reasons why wages could be set above the equilibrium wage.

Accepted Answer

minimum-wage laws
ma...

Question 12

Evidence of discrimination in labor markets

Accepted Answer

A)   applies only to race and gender.
B)   is conclusively identified in large differences in average wages rates between men and women.
C)   is difficult to verify by reference to differences in average wage rates.
D)   is more easily identified on the basis of race than gender.E) None of the above
F) A) and D)

Question 13

Other things equal,one would predict that market wages would be relatively high when

Accepted Answer

A)   the supply of labor is high.
B)   the demand for labor is low.
C)   the supply of labor is low.
D)   Both (a. ) and (b. ) are correctE) A) and B)
F) B) and D)

Question 14

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Accepted Answer

A) True 
 B)False

Question 15

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work 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) None of the above
F) A) and B)

Question 16

Black men earn an average of 21% less than white men.A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar (i) 
Years of work experience.
(ii) 
Years of education.
(iii) 
Occupations.
(iv) 
Quality of education.

Accepted Answer

A)   (i) and (ii) only
B)   (iii) and (iv) only
C)   (ii) only
D)   (i) , (ii) , (iii) ,and (iv) E) B) and C)
F) C) and D)

Question 17

The wage difference between jobs that require education and those that don't

Accepted Answer

A)   is not likely to be related to productivity differences.
B)   is a barrier to obtaining an education.
C)   does not affect the supply of workers in the different labor markets.
D)   encourages workers to bear the cost of acquiring education.E) A) and B)
F) A) and C)

Question 18

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Accepted Answer

A)   human-capital theory of education.
B)   signaling theory of education.
C)   principle that education reduces marginal productivity.
D)   principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.E) None of the above
F) A) and B)

Question 19

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A)   Restaurant customers preferred to be waited on by white waitresses rather than black waitresses.
B)   Black basketball players earned more than white basketball players.
C)   Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal.
D)   Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.E) None of the above
F) All of the above

Question 20

How does the theory of efficiency wages explain above-equilibrium wages?

Accepted Answer

A)   Employers are forced to pay higher wages in efficient markets.
B)   Employers give their workers a higher wage in the hope that it will lead to increased productivity.
C)   Workers get higher wages when they prove they are increasing their productivity.
D)   Workers demand higher wages to compensate for poor fringe benefits.E) C) and D)
F) B) and C)

Exam 19: Earnings and Discrimination

Correct Answer
verified

How does the theory of efficiency wages explain above-equilibrium wages?

Correct Answer
verified

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Correct Answer
verified

Which of the following professionals is most likely to generate the income of a superstar?

Correct Answer
verified

Correct Answer
verified

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Correct Answer
verified

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct Answer
verified

Correct Answer
verified

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Correct Answer
verified

List three reasons why wages could be set above the equilibrium wage.

Correct Answer
verified
minimum-wage laws
ma...
View Answer

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Correct Answer
verified

The wage difference between jobs that require education and those that don't

Correct Answer
verified

Evidence of discrimination in labor markets

Correct Answer
verified

Consider two groups of workers of equal skill level and experience: those who collect garbage and those who stuff envelopes with campaign fliers.Which group is likely to be paid more and why?

Correct Answer
verified
garbage co...
View Answer

Correct Answer
verified

Other things equal,one would predict that market wages would be relatively high when

Correct Answer
verified

Other things equal,when the supply of workers is low,one would predict that market wages would be

Correct Answer
verified

Which of the following would not be considered human capital?

Correct Answer
verified

Which of the following is not an example of efficiency wages?

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Earnings and Discrimination

Correct AnswerverifiedShow Answer

How does the theory of efficiency wages explain above-equilibrium wages?

Correct AnswerverifiedShow Answer

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Correct AnswerverifiedShow Answer

Which of the following professionals is most likely to generate the income of a superstar?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Correct AnswerverifiedShow Answer

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Correct AnswerverifiedShow Answer

List three reasons why wages could be set above the equilibrium wage.

Correct Answerverifiedminimum-wage lawsma...View AnswerShow Answer

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Correct AnswerverifiedShow Answer

The wage difference between jobs that require education and those that don't

Correct AnswerverifiedShow Answer

Evidence of discrimination in labor markets

Correct AnswerverifiedShow Answer

Consider two groups of workers of equal skill level and experience: those who collect garbage and those who stuff envelopes with campaign fliers.Which group is likely to be paid more and why?

Correct Answerverifiedgarbage co...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Other things equal,one would predict that market wages would be relatively high when

Correct AnswerverifiedShow Answer

Other things equal,when the supply of workers is low,one would predict that market wages would be

Correct AnswerverifiedShow Answer

Which of the following would not be considered human capital?

Correct AnswerverifiedShow Answer

Which of the following is not an example of efficiency wages?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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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
minimum-wage laws
ma...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
garbage co...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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