Question 1

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) B) and C)
F) None of the above B

Question 2

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 3

Which of the following statements is correct?

Accepted Answer

A)   Compensating wage differentials reflect different skills of workers.
B)   Discrimination by employers affects the marginal productivity of workers.
C)   The signaling theory of education suggests that schooling does not affect worker productivity.
D)   The superstar phenomenon explains why more talented entertainers earn more than less talented entertainers.E) B) and D)
F) A) and D)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Technology is an important factor in explaining the high incomes of superstars because

Accepted Answer

A)   technology accounts for differences in incomes within all occupations.
B)   technology makes it possible for the best producer to supply every customer at low cost.
C)   technology that can limit access to the superstars is available.
D)   only technologically-literate superstars can earn super incomes.E) B) and C)
F) B) and D)

Question 6

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Accepted Answer

A)   coal mining is a declining industry.
B)   coal mining jobs are potentially more dangerous than jobs with comparable education requirements.
C)   all coal mines use union labor.
D)   coal exports are rising.E) C) and D)
F) All of the above

Question 7

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Accepted Answer

A)   risen as the demand for skilled labor has increased relative to the demand for unskilled labor.
B)   risen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
C)   fallen as the demand for skilled labor has increased relative to the demand for unskilled labor.
D)   fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.E) None of the above
F) All of the above

Question 8

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Accepted Answer

A)   plumbers who work with sewer lines require years of specialized training.
B)   plumbing jobs that involve sewer lines are likely to have an element of personal satisfaction.
C)   plumbers who work with sewer lines are more likely to work a standard shift.
D)   plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.E) None of the above
F) A) and B)

Question 9

A recent law school graduate is considering two offers to practice law,one in California and one in Alabama.The California bar exam is very difficult to pass,in part because California has a large number of unaccredited law schools.Assuming all other things equal,the attorney would expect

Accepted Answer

A)   to be unable to predict the wage difference between Alabama and California.
B)   to make a higher wage in California.
C)   to make a higher wage in Alabama.
D)   wages in California and Alabama to be identical.E) A) and B)
F) C) and D)

Question 10

Explain the role that consumers play in perpetuating discrimination in labor markets.

Accepted Answer

Consumers are able to exercise their bia...

Question 11

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Accepted Answer

A)   park rangers are required to be college graduates.
B)   park rangers don't need much money to live.
C)   park ranger jobs are perceived to be dangerous.
D)   park ranger jobs are perceived to be "fun."E) A) and C)
F) B) and C)

Question 12

Former Secretary of Labor Robert Reich points to two growing categories of work in the United States.Those two categories are

Accepted Answer

A)   work that involves manufacturing,and work that involves computers and electronics.
B)   work that involves manufacturing,and work that involves personal services.
C)   work that involves identifying and solving new problems,and work that involves personal services.
D)   work that involves identifying and solving new problems,and work that involves facilitating international trade.E) A) and B)
F) All of the above

Question 13

Which of the following statements is not correct?

Accepted Answer

A)   The U.S.is experiencing an increase in the types of jobs where workers identify and solve new problems.The wages for these jobs are also rising.
B)   The U.S.is experiencing an increase in personal service jobs.The wages for these jobs are also rising.
C)   Technological advancements have replaced many routine jobs such as bank tellers and telephone operators.
D)   Manufacturing employment has decreased world-wide.E) A) and C)
F) A) and B)

Question 14

Labor unions will raise the quantity of labor demanded.

Accepted Answer

A) True 
 B)False  False

Question 15

Figure 19-2 
-Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Accepted Answer

A)   supply of 3,000 workers.
B)   demand of 7,000 workers.
C)   supply of 4,000 workers.
D)   supply of 7,000 workers.E) None of the above
F) All of the above

Question 16

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Accepted Answer

A) True 
 B)False

Question 17

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 D)
F) All of the above

Question 18

Joan is a white 23-year-old female,and Marcia is a black 23-year-old female.Both Joan and Marica are economics majors,and they graduated from the same college in the same year with the same GPA.Joan and Marcia both got jobs at a brokerage firm after graduating from college.They both work equally hard.Joan earns $38,000 a year,and Marcia earns $30,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Joan has less human capital than Marcia.
B)   Joan receives a compensating wage differential that Marcia does not.
C)   Joan has been discriminated against because she is white.
D)   Marcia has been discriminated against because he is black.E) B) and D)
F) All of the above

Question 19

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

Question 20

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Accepted Answer

A) True 
 B)False  True

Exam 19: Earnings and Discrimination

Correct Answer
verified
B

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

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

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

Correct Answer
verified

Technology is an important factor in explaining the high incomes of superstars because

Correct Answer
verified

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Correct Answer
verified

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Correct Answer
verified

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Correct Answer
verified

A recent law school graduate is considering two offers to practice law,one in California and one in Alabama.The California bar exam is very difficult to pass,in part because California has a large number of unaccredited law schools.Assuming all other things equal,the attorney would expect

Correct Answer
verified

Explain the role that consumers play in perpetuating discrimination in labor markets.

Correct Answer
verified
Consumers are able to exercise their bia...
View Answer

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Correct Answer
verified

Former Secretary of Labor Robert Reich points to two growing categories of work in the United States.Those two categories are

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Labor unions will raise the quantity of labor demanded.

Correct Answer
verified
False

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Correct Answer
verified

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct Answer
verified
True

Exam 19: Earnings and Discrimination

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Technology is an important factor in explaining the high incomes of superstars because

Correct AnswerverifiedShow Answer

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Correct AnswerverifiedShow Answer

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Correct AnswerverifiedShow Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Correct AnswerverifiedShow Answer

A recent law school graduate is considering two offers to practice law,one in California and one in Alabama.The California bar exam is very difficult to pass,in part because California has a large number of unaccredited law schools.Assuming all other things equal,the attorney would expect

Correct AnswerverifiedShow Answer

Explain the role that consumers play in perpetuating discrimination in labor markets.

Correct AnswerverifiedConsumers are able to exercise their bia...View AnswerShow Answer

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Correct AnswerverifiedShow Answer

Former Secretary of Labor Robert Reich points to two growing categories of work in the United States.Those two categories are

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Labor unions will raise the quantity of labor demanded.

Correct AnswerverifiedFalse

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Correct AnswerverifiedShow Answer

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct AnswerverifiedTrue

Correct Answer
verified
B

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
verified
Consumers are able to exercise their bia...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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False

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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True