Question 1

The theory of efficiency wages asserts that

Accepted Answer

A)   unions are often successful in forcing employers to pay higher wages.
B)   employers strive to hold wages below equilibrium levels.
C)   employers may find it profitable to pay above-equilibrium wages.
D)   efficient workers actually earn lower wages than those earned by inefficient workers.E) A) and D)
F) C) and D)

Question 2

Some economists hypothesize that international trade has altered the relative demand for skilled and unskilled labor,increasing the gap in earnings between these two groups.Which of the following statements best describes this hypothesis?

Accepted Answer

A)   Unskilled labor is plentiful and cheap in the US,so the US tends to export goods produced with unskilled labor and import goods produced with skilled labor.
B)   Unskilled labor is plentiful and cheap in many foreign countries,so the US tends to import goods produced with unskilled labor and export goods produced with skilled labor.
C)   Computers raise the demand for skilled workers and reduce the demand for the unskilled workers whose jobs are replaced by the computers.
D)   Greater demand for skilled labor has led to higher wages for those workers and greater demand for imported products.E) A) and B)
F) All of the above

Question 3

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Accepted Answer

A)   men were better at adding than women.
B)   women chose the tournament payoff scheme more than men.
C)   men thought they won the four-player tournament part of the experiment more often than women thought they won the four-player tournament.
D)   the researchers demonstrated that women face significant wage discrimination in stock brokerages.E) A) and D)
F) A) and C)

Question 4

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

Accepted Answer

A)   increased productivity gains among the unskilled laborers
B)   increased demand for goods produced by unskilled labor
C)   increased international trade with countries where unskilled labor is more plentiful
D)   increased supply of migrant workersE) B) and D)
F) A) and D)

Question 5

According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Accepted Answer

A)   an author.
B)   an auto mechanic.
C)   a singer.
D)   an advice columnist.E) B) and C)
F) A) and D)

Question 6

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Accepted Answer

A)   increase the supply of teachers to this school.
B)   increase wages for teachers at the private school relative to those at public schools.
C)   decrease the marginal product of teachers at the private school.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 7

Cheryl is a professor at a local university.She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children.What is the name for this above-equilibrium wage?

Accepted Answer

The answer of Cheryl is a professor at a local...

Question 8

First grade teachers who work in Lynn,Massachusetts's (a large,low income city north of Boston) public schools earn more than first grade teachers who work in private schools in more affluent communities north of Boston.Lynn teachers belong to a teachers' union.Which statement best explains the scenario described above?

Accepted Answer

A)   Lynn school teachers receive a compensating differential because they work in a more difficult environment,and they receive higher than market equilibrium wages because they are members of a teachers' union.
B)   Lynn school teachers receive a compensating differential because they work in a more difficult environment,but they do not receive higher than market equilibrium wages because they are members of a teachers' union.
C)   Lynn school teachers do not receive a compensating differential because they work in a more difficult environment,but they do receive higher than market equilibrium wages because they are members of a teachers' union.
D)   Lynn school teachers do not receive a compensating differential because they work in a more difficult environment,and they do not receive higher than market equilibrium wages because they are members of a teachers' union.E) All of the above
F) None of the above

Question 9

Jane and John are twins who attended grammar school through college together.Jane and John both got jobs at a brokerage firm after graduating from college with the same major.They both work equally hard.Jane earns $43,000 a year,and John earns $69,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Jane has less human capital than John.
B)   Jane has more human capital than John.
C)   John has been discriminated against because he is male.
D)   Jane has been discriminated against because she is female.E) None of the above
F) A) and D)

Question 10

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

Accepted Answer

A)   both skilled and unskilled labor will rise proportionately.
B)   skilled labor will fall and the demand for unskilled labor will rise.
C)   skilled labor will rise and the demand for unskilled labor will fall.
D)   both skilled and unskilled labor will be unaffected,assuming no barriers to free trade.E) C) and D)
F) B) and C)

Question 11

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.After the workers become unionized,how many workers do manufacturing firms collectively hire?

Accepted Answer

A)   130 workers
B)   150 workers
C)   170 workers
D)   There is not enough information to determine the number of workers.E) A) and D)
F) None of the above

Question 12

Above-equilibrium wages caused by efficiency wages will most likely result in

Accepted Answer

A)   a shortage of labor.
B)   increased unemployment.
C)   compensating wage differentials.
D)   an decrease in the quantity of labor supplied.E) B) and D)
F) None of the above

Question 13

Human capital is

Accepted Answer

A)   an important determinant of wages,but it does not affect the production of goods and services.
B)   an important determinant of wages,and it affects the production of goods and services.
C)   a specific type of physical capital made by humans rather than machines.
D)   very different from physical capital in that physical capital represents an investment,while human capital does not represent an investment.E) None of the above
F) A) and B)

Question 14

Figure 19-1 
-Refer to Figure 19-1.The figure shows labor demand and labor supply in a non-unionized labor market.If the current labor demand is D1 and the current labor supply is S1,when a minimum wage of $18 per hour is imposed in this market,how many unemployed workers result?

Accepted Answer

The answer of Figure 19-1 
-Refer to Figure 19-1.The figure...

Question 15

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,suppose it made coal miners more productive.We would expect that the wages of coal miners would

Accepted Answer

A)   rise.
B)   fall.
C)   stay exactly the same.
D)   rise,fall,or stay the same.E) B) and D)
F) A) and D)

Question 16

Name two occupations that have the two characteristics required for the superstar phenomenon.

Accepted Answer

The answer of Name two occupations that have the two...

Question 17

In 1913,the Ford Motor Company decided to pay its employees $5 a day.This wage was significantly higher than what any other organization offered.Henry Ford believed that this wage would make his employees happier,increase their productivity,and lower employee turnover.Economists would say that Mr.Ford offered his employees

Accepted Answer

A)   a union.
B)   an efficiency wage.
C)   a diminishing rate of marginal return.
D)   a leisure wage.E) A) and D)
F) A) and C)

Question 18

The term "compensating differential" refers to

Accepted Answer

A)   the fact that workers who do similar work should be paid the same wage.
B)   the fact that some workers live further from their jobs than do other workers.
C)   a wage difference that is distinguishable on the basis of monetary characteristics.
D)   a wage difference that arises from nonmonetary characteristics of different jobs.E) A) and B)
F) A) and C)

Question 19

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Accepted Answer

A)   the demand for female labor to be lower than the demand for male labor.
B)   the demand for female labor to be higher than the demand for male labor.
C)   the supply of female labor to be lower than the demand for male labor.
D)   the supply of female labor to be higher than the supply of male labor.E) C) and D)
F) None of the above

Question 20

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) All of the above
F) A) and B)

Exam 19: Earnings and Discrimination

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,suppose it made coal miners more productive.We would expect that the wages of coal miners would

Correct Answer
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Correct Answer
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Figure 19-1 -Refer to Figure 19-1.The figure shows labor demand and labor supply in a non-unionized labor market.If the current labor demand is D1 and the current labor supply is S1,when a minimum wage of $18 per hour is imposed in this market,how many unemployed workers result?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct Answer
verified

According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Correct Answer
verified

Some economists hypothesize that international trade has altered the relative demand for skilled and unskilled labor,increasing the gap in earnings between these two groups.Which of the following statements best describes this hypothesis?

Correct Answer
verified

Correct Answer
verified

The theory of efficiency wages asserts that

Correct Answer
verified

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

Correct Answer
verified

The term "compensating differential" refers to

Correct Answer
verified

Name two occupations that have the two characteristics required for the superstar phenomenon.

Correct Answer
verified

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Correct Answer
verified

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

Correct Answer
verified

Above-equilibrium wages caused by efficiency wages will most likely result in

Correct Answer
verified

Human capital is

Correct Answer
verified

Exam 19: Earnings and Discrimination

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,suppose it made coal miners more productive.We would expect that the wages of coal miners would

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1.The figure shows labor demand and labor supply in a non-unionized labor market.If the current labor demand is D1 and the current labor supply is S1,when a minimum wage of $18 per hour is imposed in this market,how many unemployed workers result?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct AnswerverifiedShow Answer

According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Correct AnswerverifiedShow Answer

Some economists hypothesize that international trade has altered the relative demand for skilled and unskilled labor,increasing the gap in earnings between these two groups.Which of the following statements best describes this hypothesis?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The theory of efficiency wages asserts that

Correct AnswerverifiedShow Answer

Which of the following scenarios would serve to decrease the demand for unskilled labor in our country?

Correct AnswerverifiedShow Answer

The term "compensating differential" refers to

Correct AnswerverifiedShow Answer

Name two occupations that have the two characteristics required for the superstar phenomenon.

Correct AnswerverifiedShow Answer

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Correct AnswerverifiedShow Answer

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

Correct AnswerverifiedShow Answer

Above-equilibrium wages caused by efficiency wages will most likely result in

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

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