Question 1

Bob,the manager and owner of a small company,believes in the theory of efficiency wages.As such,Bob would be most likely to agree with which of the following quotes?

Accepted Answer

A)   "The only place where success comes before work is in the dictionary."
B)   "Work hard. Play harder."
C)   "Pay a man for the job you want him to do."
D)   "Imagination is more important than knowledge."E) A) and B)
F) A) and D)

Question 2

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)  and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4.If some consumers in the market for haircuts have a strong preference for having their hair cut by a barber who is not going bald,then

Accepted Answer

A)   the difference in wages will eventually disappear since a haircut is a homogeneous good.
B)   barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair.
C)   barbershops that hire barbers with hair will always be much more profitable.
D)   barbershops that hire bald barbers will always be much more profitable.E) All of the above
F) C) and D)

Question 3

The most popular movie stars have high incomes for a number of reasons.One such reason is

Accepted Answer

A)   an ability for almost everyone to enjoy movies at a relatively low cost.
B)   the above-average intellect of the average movie star.
C)   a compensating differential.
D)   a lack of technological advances in the movie industry.E) A) and C)
F) None of the above

Question 4

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Accepted Answer

A)   the superstar phenomenon.
B)   the theory of efficiency wages.
C)   compensating differentials.
D)   differences in educational attainment.E) A) and B)
F) A) and C)

Question 5

Which of the following does not explain the "beauty premium" differences in wages?

Accepted Answer

A)   Better-looking people are preferred by customers; thus, employers will pay them higher wages than average-looking people.
B)   Beauty may be an indirect measure of other abilities that employers value.
C)   Average-looking people are preferred by customers; thus, employers will pay them higher wages than better-looking people.
D)   Employers discriminate in favor of better-looking people.E) B) and C)
F) A) and D)

Question 6

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Accepted Answer

A) True 
 B)False

Question 7

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) All of the above

Question 8

Daryn and Nick work for two different companies,but each performs the same job working on a loading dock.Daryn,however,earns a higher salary than his friend Nick The difference in salary could illustrate union wages if Daryn's annual salary is covered by a collective bargaining agreement and Nick's is not.

Accepted Answer

A) True 
 B)False

Question 9

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Accepted Answer

A)   The quantity of labor supplied for easy jobs exceeds that for difficult jobs.
B)   The quantity of labor supplied for fun jobs exceeds that for dull jobs.
C)   The quantity of labor supplied for safe jobs exceeds that for dangerous jobs.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 10

When comparing average wages for black and white men in the United States,wages paid to black men have been about 20 percent less than those paid to white men.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)   The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
B)   Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
C)   Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)   Discrimination by employers against a group of workers may artificially lower wages for that group.E) A) and B)
F) None of the above

Question 12

Suppose that Philip is the best contractor in town,and he makes $400,000 a year.Suppose that Julia Roberts is the best and highest paid actress in Hollywood,and she makes $13 million per movie.Both are the best in their respective fields of work.One reason for the significant difference in incomes has to do with the nature of the service each offers.Philip's contracting services

Accepted Answer

A)   can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year.
B)   can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
C)   can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
D)   can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.E) A) and B)
F) A) and C)

Question 13

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Accepted Answer

A)   physical-capital theory
B)   human-capital theory
C)   signaling theory
D)   neoclassical theoryE) B) and D)
F) A) and D)

Question 14

The time spent by students in college

Accepted Answer

A)   leads to lower lifetime earnings because opportunity costs are high.
B)   is an investment in human capital.
C)   decreases human capital by lowering work experience.
D)   increases as the wages paid to low-skilled workers rise.E) B) and C)
F) A) and C)

Question 15

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Accepted Answer

A)   remained roughly constant for both men and women.
B)   widened for both men and women.
C)   widened for men and narrowed for women.
D)   narrowed for men and widened for women.E) None of the above
F) A) and D)

Question 16

The statement that "the rich get richer,and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Accepted Answer

A) True 
 B)False

Question 17

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Accepted Answer

A)   a compensating differential.
B)   an inefficiency wage.
C)   the equilibrium difference.
D)   a union wage.E) A) and B)
F) A) and C)

Question 18

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) C) and D)
F) B) and D)

Question 19

By definition,there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Accepted Answer

A)   race, ethnic group, sex, age, or other personal characteristics.
B)   qualifications, experience, or job preferences.
C)   the levels of human capital.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 20

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)   An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
B)   An employer is more likely to grant an interview to a person graduating from the local community college than from Yale.
C)   An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
D)   An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."E) A) and C)
F) All of the above

Exam 19: Earnings and Discrimination.

Which of the following statements does not accurately describe the market for labor?

Correct Answer
verified

By definition,there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Correct Answer
verified

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct Answer
verified

The most popular movie stars have high incomes for a number of reasons.One such reason is

Correct Answer
verified

Which of the following does not explain the "beauty premium" differences in wages?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The statement that "the rich get richer,and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Correct Answer
verified

The time spent by students in college

Correct Answer
verified

Correct Answer
verified

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Correct Answer
verified

Correct Answer
verified

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct Answer
verified

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Correct Answer
verified

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Correct Answer
verified

Bob,the manager and owner of a small company,believes in the theory of efficiency wages.As such,Bob would be most likely to agree with which of the following quotes?

Correct Answer
verified

Which of the following represents an example of labor-market discrimination?

Correct Answer
verified

When comparing average wages for black and white men in the United States,wages paid to black men have been about 20 percent less than those paid to white men.

Correct Answer
verified

Correct Answer
verified

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Correct Answer
verified

Exam 19: Earnings and Discrimination.

Which of the following statements does not accurately describe the market for labor?

Correct AnswerverifiedShow Answer

By definition,there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Correct AnswerverifiedShow Answer

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct AnswerverifiedShow Answer

The most popular movie stars have high incomes for a number of reasons.One such reason is

Correct AnswerverifiedShow Answer

Which of the following does not explain the "beauty premium" differences in wages?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The statement that "the rich get richer,and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Correct AnswerverifiedShow Answer

The time spent by students in college

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct AnswerverifiedShow Answer

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Correct AnswerverifiedShow Answer

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Correct AnswerverifiedShow Answer

Bob,the manager and owner of a small company,believes in the theory of efficiency wages.As such,Bob would be most likely to agree with which of the following quotes?

Correct AnswerverifiedShow Answer

Which of the following represents an example of labor-market discrimination?

Correct AnswerverifiedShow Answer

When comparing average wages for black and white men in the United States,wages paid to black men have been about 20 percent less than those paid to white men.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming that all other things are equal,including the wage,which of the following statements is correct?

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