Question 1

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

Accepted Answer

A) True 
 B)False

Question 2

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Accepted Answer

A)  discrimination against people from the west exists.
B)  people from the east receive compensating differentials.
C)  people from the west have lower levels of human capital.
D)  All of the above could be correct.E) All of the above
F) B) and D)

Question 3

Which of the following is an example of human capital?

Accepted Answer

A)  Machines built by people.
B)  Formal education acquired in schools.
C)  On-the-job training.
D)  Both b and c are correct.E) A) and B)
F) A) and C)

Question 4

The market wage could be higher than the equilibrium wage if a worker

Accepted Answer

A)  belongs to a labor union.
B)  is covered by a minimum-wage law.
C)  is paid an efficiency wage.
D)  All of the above are correct.E) B) and C)
F) C) and D)

Question 5

According to the signaling view, education

Accepted Answer

A)  has no effect on lifetime earnings.
B)  alters work ethic.
C)  enhances productivity.
D)  is an indicator of natural ability.E) A) and D)
F) C) and D)

Question 6

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Accepted Answer

A)  work effort.
B)  loyalty to the firm.
C)  years of schooling.
D)  years of experience.E) B) and D)
F) A) and B)

Question 7

An effective minimum wage law will increase the quantity of labor demanded.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A)  human capital
B)  discrimination
C)  unions
D)  All of the above could explain wage differences among groups.E) A) and B)
F) A) and C)

Question 9

Which of the following is an example of customer discrimination?

Accepted Answer

A)  A foreign government prevents women from legally working as teachers.
B)  White theater goers prefer to watch movies with white stars rather than black stars.
C)  Customers prefer more experienced lawyers over less experienced ones.
D)  All of the above are correct.E) A) and C)
F) C) and D)

Question 10

Which of the following theories explains why increased education translates into higher wages?

Accepted Answer

A)  human-capital theory
B)  the theory of compensating differentials
C)  the theory of supply and demand
D)  comparative advantageE) A) and C)
F) C) and D)

Question 11

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 12

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Accepted Answer

The theory of signaling suggests that th...

Question 13

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Accepted Answer

The answer of Among male workers over age 25, about...

Question 14

A difference in wages between a highly-educated worker and a less-educated worker

Accepted Answer

A)  may be due to a difference in the amounts of human capital between the workers.
B)  may be a signal that the market is indifferent to a worker's level of human capital.
C)  is considered unfair by economists.
D)  is considered unfair by everyone.E) All of the above
F) A) and D)

Question 15

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Accepted Answer

A)  are valued more by the market relative to Susan's and that explains why her income is higher than Susan's.
B)  are valued less by the market relative to Susan's and that explains why her income is higher than Susan's.
C)  are valued less by the market relative to Susan's and that explains why her income is lower than Susan's.
D)  are more expensive because she receives a compensating differential.E) C) and D)
F) All of the above

Question 16

John is an Asian 23-year-old male, and Ken is an Asian 43-year-old male. Both John and Ken are economics majors, and they graduated from the same college with the same GPA - John in 2006 and Ken in 1986. John and Ken are both financial advisers at the same brokerage firm. John earns $52,000 a year, and Ken earns $88,000 a year. Select the best explanation for this wage difference.

Accepted Answer

A)  John has more human capital than Ken.
B)  John has less human capital than Ken.
C)  John has been discriminated against because he is young.
D)  Ken has been discriminated against because he is old.E) B) and C)
F) C) and D)

Question 17

Evidence from a study of the market for baseball players using 1960s data

Accepted Answer

A)  indicated that sports with strong player associations are unlikely to experience wage discrimination.
B)  suggested that government regulation had eliminated most evidence of wage discrimination.
C)  found some evidence of consumer-driven wage discrimination.
D)  found that measurement of marginal productivity was very difficult for baseball players.E) C) and D)
F) None of the above

Question 18

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Accepted Answer

A)  Dave's job is less dangerous.
B)  of efficiency wages.
C)  of education as a signal.
D)  Dave has more human capital.E) B) and C)
F) B) and D)

Question 19

Human capital is

Accepted Answer

A)  a stock of equipment and structures.
B)  the result of investments workers make in themselves such as on-the-job training.
C)  a difference in wages that arises to offset the nonmonetary characteristics of different jobs.
D)  inversely related to the supply of workers.E) None of the above
F) A) and B)

Question 20

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) A) and D)
F) C) and D)

Exam 19: Earnings and Discrimination

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Correct Answer
verified

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Correct Answer
verified

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

Which of the following theories explains why increased education translates into higher wages?

Correct Answer
verified

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

Correct Answer
verified

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

Correct Answer
verified

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Correct Answer
verified

Which of the following is an example of human capital?

Correct Answer
verified

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct Answer
verified

The market wage could be higher than the equilibrium wage if a worker

Correct Answer
verified

Human capital is

Correct Answer
verified

An effective minimum wage law will increase the quantity of labor demanded.

Correct Answer
verified

Evidence from a study of the market for baseball players using 1960s data

Correct Answer
verified

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct Answer
verified

Correct Answer
verified

Which of the following is an example of customer discrimination?

Correct Answer
verified

Which of the following can be used to help explain wage differences among different groups of workers?

Correct Answer
verified

According to the signaling view, education

Correct Answer
verified

A difference in wages between a highly-educated worker and a less-educated worker

Correct Answer
verified

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Correct Answer
verified

Exam 19: Earnings and Discrimination

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Correct AnswerverifiedShow Answer

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Correct AnswerverifiedShow Answer

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Correct AnswerverifiedThe theory of signaling suggests that th...View AnswerShow Answer

Which of the following theories explains why increased education translates into higher wages?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

Correct AnswerverifiedShow Answer

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct AnswerverifiedShow Answer

The market wage could be higher than the equilibrium wage if a worker

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

An effective minimum wage law will increase the quantity of labor demanded.

Correct AnswerverifiedShow Answer

Evidence from a study of the market for baseball players using 1960s data

Correct AnswerverifiedShow Answer

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of customer discrimination?

Correct AnswerverifiedShow Answer

Which of the following can be used to help explain wage differences among different groups of workers?

Correct AnswerverifiedShow Answer

According to the signaling view, education

Correct AnswerverifiedShow Answer

A difference in wages between a highly-educated worker and a less-educated worker

Correct AnswerverifiedShow Answer

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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