Question 1

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

Question 2

The wage gap between skilled and unskilled worker has

Accepted Answer

A)   risen; economists argue that this may be due in part to technological progress.
B)   risen; economists argue that none of the rise is due to technological progress.
C)   fallen; economists argue that this may be due in part to technological progress.
D)   fallen; economists argue that none of the fall is due to technological progress.E) B) and C)
F) A) and D)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which theory states that education is correlated with natural ability?

Accepted Answer

The answer of Which theory states that education is correlated...

Question 5

George and Brad are waiters at a local restaurant. The female customers think that George is better looking than Brad. If George earns more than Brad, this could be an example of each of the following except

Accepted Answer

A)   customer preferences.
B)   discrimination.
C)   a beauty premium.
D)   a compensating differential.E) A) and B)
F) A) and C)

Question 6

A signaling theory of education suggests that

Accepted Answer

A)   people who attend college are more likely to capture a "beauty premium."
B)   education is a signal of social status.
C)   education does not necessarily increase productivity.
D)   education will sever the link between innate ability and compensation.E) C) and D)
F) All of the above

Question 7

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 di...

Question 8

The accumulation of investments in people, such as education and on-the-job training, is known as

Accepted Answer

A)   physical capital.
B)   human capital.
C)   efficiency wage.
D)   compensating differentials.E) B) and C)
F) A) and B)

Question 9

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Accepted Answer

A)   some of the wage gap is explained by efficiency wages.
B)   differences in years of work experience likely lead to productivity differences between men and women.
C)   compensating differentials usually lead to higher wages for women.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 10

Allen and Ellen both work at Burger Ranch. Allen is paid more than Ellen. Which of the following could explain why Allen is paid more?

Accepted Answer

A)   The manager discriminates against women.
B)   Allen works the undesirable early morning shift.
C)   Allen has more experience and so more human capital.
D)   All of the above could be correct.E) A) and B)
F) B) and C)

Question 11

According to evidence provided by the U.S. government, the median black

Accepted Answer

A)   man earns more than the median black woman.
B)   woman earns less than the median white woman
C)   man earns less than the median white man.
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 12

Scenario 19-5
Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5. Why might an economist be skeptical of Jason's discrimination complaint?

Accepted Answer

A)   Through antitrust laws, discriminating firms can be penalized with large fees.
B)   Differences in wages alone do not by themself prove discrimination.
C)   Discrimination leads to profit maximization.
D)   Even if customers dislike Jason because he's not helpful, if the store operates in a competitive market the store will pay Jason the same as other workers.E) A) and B)
F) A) and C)

Question 13

Studies have shown that union workers earn about

Accepted Answer

A)   10 to 20 percent more than nonunion workers in similar jobs.
B)   10 to 20 percent less than nonunion workers in similar jobs.
C)   40 to 50 percent more than nonunion workers in similar jobs.
D)   40 to 50 percent less than nonunion workers in similar jobs.E) None of the above
F) B) and C)

Question 14

Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."

Accepted Answer

There are many explanations of the gende...

Question 15

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

Question 16

After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn't provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer.

Accepted Answer

Compensating differentials refer to diff...

Question 17

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Accepted Answer

The answer of Many studies of wage discrimination have been...

Question 18

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

Question 19

Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the

Accepted Answer

A)   higher-paying job has a compensating wage differential of $3 per hour.
B)   higher-paying job has a compensating wage differential of $25 per hour.
C)   higher-paying job is intrinsically more attractive than the lower-paying job.
D)   factory is discriminating against Sally because she is a woman.E) C) and D)
F) A) and D)

Question 20

The signaling theory of education is most similar to the

Accepted Answer

A)   human capital theory of education.
B)   discrimination theory of advertising.
C)   signaling theory of advertising.
D)   efficiency wage theory of labor economics.E) A) and C)
F) B) and D)

Exam 19: Earnings and Discrimination

Evidence of differences in average wages of women compared to men

Correct Answer
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Correct Answer
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Compensating differentials refer to diff...
View Answer

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 di...
View Answer

The accumulation of investments in people, such as education and on-the-job training, is known as

Correct Answer
verified

The signaling theory of education is most similar to the

Correct Answer
verified

A signaling theory of education suggests that

Correct Answer
verified

Allen and Ellen both work at Burger Ranch. Allen is paid more than Ellen. Which of the following could explain why Allen is paid more?

Correct Answer
verified

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Studies have shown that union workers earn about

Correct Answer
verified

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Correct Answer
verified

The wage gap between skilled and unskilled worker has

Correct Answer
verified

According to evidence provided by the U.S. government, the median black

Correct Answer
verified

George and Brad are waiters at a local restaurant. The female customers think that George is better looking than Brad. If George earns more than Brad, this could be an example of each of the following except

Correct Answer
verified

Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."

Correct Answer
verified
There are many explanations of the gende...
View Answer

Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the

Correct Answer
verified

Which theory states that education is correlated with natural ability?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Evidence of differences in average wages of women compared to men

Correct AnswerverifiedShow Answer

Correct AnswerverifiedCompensating differentials refer to diff...View AnswerShow 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 di...View AnswerShow Answer

The accumulation of investments in people, such as education and on-the-job training, is known as

Correct AnswerverifiedShow Answer

The signaling theory of education is most similar to the

Correct AnswerverifiedShow Answer

A signaling theory of education suggests that

Correct AnswerverifiedShow Answer

Allen and Ellen both work at Burger Ranch. Allen is paid more than Ellen. Which of the following could explain why Allen is paid more?

Correct AnswerverifiedShow Answer

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Studies have shown that union workers earn about

Correct AnswerverifiedShow Answer

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Correct AnswerverifiedShow Answer

The wage gap between skilled and unskilled worker has

Correct AnswerverifiedShow Answer

According to evidence provided by the U.S. government, the median black

Correct AnswerverifiedShow Answer

George and Brad are waiters at a local restaurant. The female customers think that George is better looking than Brad. If George earns more than Brad, this could be an example of each of the following except

Correct AnswerverifiedShow Answer

Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."

Correct AnswerverifiedThere are many explanations of the gende...View AnswerShow Answer

Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the

Correct AnswerverifiedShow Answer

Which theory states that education is correlated with natural ability?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
Compensating differentials refer to diff...
View Answer

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

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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Correct Answer
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There are many explanations of the gende...
View Answer

Correct Answer
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Correct Answer
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