Question 1

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Accepted Answer

A)   unrestricted entry and exit in markets.
B)   lower costs of hiring.
C)   a perfectly elastic market demand.
D)   customer preferences.E) A) and C)
F) A) and D)

Question 2

The superstar phenomenon applies to

Accepted Answer

A)   all famous people equally.
B)   workers receiving a compensating wage differential.
C)   markets where technology allows the best producer to supply every customer at a low cost.
D)   markets where a small group of workers produce a much higher quality product than the average worker.E) B) and C)
F) All of the above

Question 3

Evidence of differences in average wages of women compared to men

Accepted Answer

A)   clearly illustrates differences in productivity between genders.
B)   provides conclusive evidence of discrimination on the basis of gender.
C)   is seldom used to provide evidence of discriminatory bias.
D)   does not provide conclusive evidence of discrimination.E) A) and D)
F) C) and D)

Question 4

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Accepted Answer

Men and women may,on average,select diff...

Question 5

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Accepted Answer

A)   the inability to calculate wage differentials.
B)   the inability to see changes in the wage differentials over a period of time.
C)   the difficulty in measuring productivity differences between workers.
D)   the difficulty in measuring female labor-force participation.E) B) and C)
F) All of the above

Question 6

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

Question 7

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Accepted Answer

A)   America is likely to lose even more manufacturing jobs to China and India.
B)   labor productivity has fallen,which has caused employment to fall as well.
C)   workers who have more education and better problem-solving skills are likely to work in higher-paying jobs.
D)   the pay for personal-service workers is likely to rise.E) B) and C)
F) A) and D)

Question 8

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Accepted Answer

A)   non-pecuniary differentials
B)   compensating differentials
C)   fundamental differences
D)   idiosyncratic differencesE) C) and D)
F) All of the above

Question 9

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Accepted Answer

A)   to be very dull.
B)   to be fun.
C)   to be very dangerous.
D)   to require a college degree.E) B) and D)
F) C) and D)

Question 10

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

Question 11

In the signaling theory of education,

Accepted Answer

A)   discrimination does not affect wage differentials.
B)   schooling makes workers more productive in the long-run.
C)   schooling makes workers more productive in the short-run.
D)   the worker signals to the employer that he is a valuable employee because he was willing to spend time to get an education.E) B) and C)
F) B) and D)

Question 12

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

Accepted Answer

A)   Governments regulate to resolve problems of discrimination.
B)   Profit-maximizing firms that do not discriminate tend to replace firms that discriminate.
C)   Wages paid to groups that are victimized by discrimination are eventually bid up to above-equilibrium levels.
D)   Discrimination is usually the outcome of rational decision-making processes,and competitive markets produce rational outcomes.E) All of the above
F) C) and D)

Question 13

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

Question 14

Which of the following is the most important contributor to human capital?

Accepted Answer

A)   education
B)   effort
C)   chance
D)   physical strengthE) B) and C)
F) A) and B)

Question 15

Which of the following statements is not correct?

Accepted Answer

A)   If a firm discriminates by paying short workers less than tall workers,the firm may be able to compete in the market if the firm's customers also prefer taller workers to shorter workers.
B)   If the government passes regulations that prevent shorter workers from working in higher paying jobs,taller workers may continue to earn higher wages than shorter workers.
C)   Government regulation that prohibits discrimination is economically necessary because market forces support discrimination.
D)   Competitive markets will eliminate discrimination in wages over time unless customer preferences also reflect discrimination and/or government intervention promotes discrimination.E) B) and D)
F) All of the above

Question 16

When comparing average wages for black and white workers in the United States,wages paid to black workers have been about 20 percent less than those paid to white 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) C) and D)

Question 18

The idea that minimum-wage laws lead to wages that exceed equilibrium levels

Accepted Answer

A)   is a component of the theory of efficiency wages.
B)   cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
C)   is more applicable to unskilled-labor markets than to skilled-labor markets.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 19

A union's major source of power is its

Accepted Answer

A)   high-profile leadership.
B)   ability to increase productivity.
C)   ability to threaten a strike.
D)   ability to deny employers the opportunity to bargain over wages.E) A) and D)
F) All of the above

Question 20

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

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

Correct Answer
verified

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct Answer
verified

Human capital is

Correct Answer
verified

The superstar phenomenon applies to

Correct Answer
verified

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct Answer
verified

Which of the following is the most important contributor to human capital?

Correct Answer
verified

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Correct Answer
verified

Evidence of differences in average wages of women compared to men

Correct Answer
verified

The idea that minimum-wage laws lead to wages that exceed equilibrium levels

Correct Answer
verified

A union's major source of power is its

Correct Answer
verified

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Correct Answer
verified

Correct Answer
verified

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct Answer
verified

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

In the signaling theory of education,

Correct Answer
verified

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Correct Answer
verified
Men and women may,on average,select diff...
View Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Correct Answer
verified

Exam 19: Earnings and Discrimination

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

Correct AnswerverifiedShow Answer

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

The superstar phenomenon applies to

Correct AnswerverifiedShow Answer

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct AnswerverifiedShow Answer

Which of the following is the most important contributor to human capital?

Correct AnswerverifiedShow Answer

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Correct AnswerverifiedShow Answer

Evidence of differences in average wages of women compared to men

Correct AnswerverifiedShow Answer

The idea that minimum-wage laws lead to wages that exceed equilibrium levels

Correct AnswerverifiedShow Answer

A union's major source of power is its

Correct AnswerverifiedShow Answer

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct AnswerverifiedShow Answer

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the signaling theory of education,

Correct AnswerverifiedShow Answer

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Correct AnswerverifiedMen and women may,on average,select diff...View AnswerShow Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Correct AnswerverifiedShow Answer

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Men and women may,on average,select diff...
View Answer

Correct Answer
verified