Question 1

A "technology" hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the United States.This hypothesis emphasizes the likelihood that technological advances have

Accepted Answer

A)  increased the supply of both skilled and unskilled workers.
B)  increased the supply of skilled workers and decreased the supply of unskilled workers.
C)  increased the demand for skilled workers and decreased the demand for unskilled workers.
D)  decreased the demand for both skilled and unskilled workers.E) A) and D)
F) B) and C)

Question 2

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) None of the above
F) All of the above

Question 3

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience,education,lifet...

Question 4

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage.This can be partially explained by the fact that the job is likely to

Accepted Answer

A)  require specialized skills.
B)  be difficult.
C)  be incredibly dull.
D)  carry a high degree of personal satisfaction.E) A) and B)
F) A) and C)

Question 5

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 weaken the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)  Cowboys are more productive than farm boys.
B)  Cowboys work longer hours than farm boys and their effort is greater.
C)  Cowboys are generally less educated than farm boys in the field of hardware.
D)  All of the above would weaken the discrimination complaint.E) B) and C)
F) All of the above

Question 6

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Accepted Answer

A)  human-capital and price-fixing
B)  human-capital and signaling
C)  wage-differential and derived-demand
D)  cost-allocation and compensating differentialsE) A) and B)
F) A) and C)

Question 7

Empirical work that does not account for differences in the productivities of workers

Accepted Answer

A)  is unlikely to find evidence of wage differentials.
B)  can provide strong evidence of labor market discrimination.
C)  is likely to misinterpret apparent evidence of labor market discrimination.
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers.E) All of the above
F) A) and C)

Question 8

Consumers are often a primary source of discrimination in labor markets.

Accepted Answer

A) True 
 B)False

Question 9

Suppose that an employer hires workers with blue eyes and workers with brown eyes.Each type of worker has the same productivity.Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?

Accepted Answer

A)  The employer will be just as efficient as a nondiscriminating employer.
B)  The employer will face higher costs than firms that focus only on maximizing profits.
C)  The employer will immediately go out of business because discrimination is illegal.
D)  Both a and b are correct.E) B) and C)
F) B) and D)

Question 10

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

Accepted Answer

A) True 
 B)False

Question 11

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as

Accepted Answer

A)  an efficiency wage.
B)  a compensating differential.
C)  a wage adjustment.
D)  a minimum wage.E) C) and D)
F) B) and C)

Question 12

The demand for workers with excellent problem-solving skills is increasing,as are the wages for those workers.

Accepted Answer

A) True 
 B)False

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) A) and D)
F) None of the above

Question 14

Taxi cab drivers in large cities are likely to earn more than taxi cab drivers in rural areas.One reason for this wage differential could be that

Accepted Answer

A)  driving in large cities is more dangerous than driving in rural areas.
B)  driving in large cities is more fun than driving in rural areas.
C)  driving in large cities is easier than driving in rural areas.
D)  it is unlikely that a taxi cab driver in a large city will be involved in a traffic accident with farm animals.E) A) and B)
F) C) and D)

Question 15

Evidence from a 1988 study of the market for professional basketball players

Accepted Answer

A)  found no evidence of consumer-driven wage discrimination.
B)  found some evidence of consumer-driven wage discrimination.
C)  found that measurement of marginal productivity was very difficult for basketball players.
D)  indicated that sports with strong player associations are unlikely to experience wage discrimination.E) A) and C)
F) B) and D)

Question 16

In general,the higher a person's education level,

Accepted Answer

A)  the higher the person's earnings.
B)  the more physically attractive the person is likely to be.
C)  the more socially outgoing the person is likely to be.
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 17

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because (i) 	they don't believe the wage differential really exists.
(ii) 	they can't agree on a definition of the term "discrimination."
(iii) 	different people may have different wages for reasons unrelated to discrimination.

Accepted Answer

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

Question 18

A natural antidote to employer discrimination in market economies is the

Accepted Answer

A)  threat of judicial review.
B)  profit motive.
C)  political process.
D)  union movement.E) None of the above
F) A) and D)

Question 19

Economists generally agree that

Accepted Answer

A)  human capital theory provides the best explanation of discriminatory practices.
B)  differences in average wages do not by themselves provide conclusive evidence about the magnitude of discrimination effects in labor markets.
C)  discrimination is exclusively an economic, rather than political, phenomenon.
D)  most of the wage differentials observed in the U.S.economy are due to discrimination.E) All of the above
F) A) and D)

Question 20

Both Jake and Bill are police officers.Jake is a patrolman,and Bill is a detective.Jake's job is inherently more dangerous than Bill's.Bill has passed a difficult exam in order to be promoted to detective.Bill earns more than Jake.This is likely because

Accepted Answer

A)  of a compensating differential.
B)  of efficiency wages.
C)  of education as a signal.
D)  Bill has more human capital.E) C) and D)
F) A) and B)

Exam 19: Earnings and Discrimination

Empirical work that does not account for differences in the productivities of workers

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

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Correct Answer
verified

Consumers are often a primary source of discrimination in labor markets.

Correct Answer
verified

Evidence from a 1988 study of the market for professional basketball players

Correct Answer
verified

Suppose that an employer hires workers with blue eyes and workers with brown eyes.Each type of worker has the same productivity.Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?

Correct Answer
verified

Taxi cab drivers in large cities are likely to earn more than taxi cab drivers in rural areas.One reason for this wage differential could be that

Correct Answer
verified

A "technology" hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the United States.This hypothesis emphasizes the likelihood that technological advances have

Correct Answer
verified

A natural antidote to employer discrimination in market economies is the

Correct Answer
verified

In general,the higher a person's education level,

Correct Answer
verified

Both Jake and Bill are police officers.Jake is a patrolman,and Bill is a detective.Jake's job is inherently more dangerous than Bill's.Bill has passed a difficult exam in order to be promoted to detective.Bill earns more than Jake.This is likely because

Correct Answer
verified

Correct Answer
verified

Economists generally agree that

Correct Answer
verified

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as

Correct Answer
verified

The time spent by students in college

Correct Answer
verified

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage.This can be partially explained by the fact that the job is likely to

Correct Answer
verified

Correct Answer
verified

The demand for workers with excellent problem-solving skills is increasing,as are the wages for those workers.

Correct Answer
verified

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct Answer
verified
Job experience,education,lifet...
View Answer

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Empirical work that does not account for differences in the productivities of workers

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

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Correct AnswerverifiedShow Answer

Consumers are often a primary source of discrimination in labor markets.

Correct AnswerverifiedShow Answer

Evidence from a 1988 study of the market for professional basketball players

Correct AnswerverifiedShow Answer

Suppose that an employer hires workers with blue eyes and workers with brown eyes.Each type of worker has the same productivity.Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?

Correct AnswerverifiedShow Answer

Taxi cab drivers in large cities are likely to earn more than taxi cab drivers in rural areas.One reason for this wage differential could be that

Correct AnswerverifiedShow Answer

A "technology" hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the United States.This hypothesis emphasizes the likelihood that technological advances have

Correct AnswerverifiedShow Answer

A natural antidote to employer discrimination in market economies is the

Correct AnswerverifiedShow Answer

In general,the higher a person's education level,

Correct AnswerverifiedShow Answer

Both Jake and Bill are police officers.Jake is a patrolman,and Bill is a detective.Jake's job is inherently more dangerous than Bill's.Bill has passed a difficult exam in order to be promoted to detective.Bill earns more than Jake.This is likely because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists generally agree that

Correct AnswerverifiedShow Answer

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as

Correct AnswerverifiedShow Answer

The time spent by students in college

Correct AnswerverifiedShow Answer

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage.This can be partially explained by the fact that the job is likely to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The demand for workers with excellent problem-solving skills is increasing,as are the wages for those workers.

Correct AnswerverifiedShow Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct AnswerverifiedJob experience,education,lifet...View AnswerShow Answer

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

Correct AnswerverifiedShow Answer

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Correct Answer
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Job experience,education,lifet...
View Answer

Correct Answer
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