Question 1

Scenario 19-6
Suppose that in the competitive market for auto repair, firms prefer to hire men rather than women. Assume that the women applying for positions have the same skills, experience, and work ethic as the men. As a result of this discrimination, the demand for women is lower than it otherwise would be.
-Refer to Scenario 19-6. What conclusion can you draw about women's wages compared to men's wages in this industry?

Accepted Answer

Women will...

Question 2

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Accepted Answer

A)   discrimination against people from the west exists.
B)   people from the east receive compensating differentials.
C)   people from the west have lower levels of human capital.
D)   All of the above could be correct.E) C) and D)
F) B) and C)

Question 3

A compensating differential is

Accepted Answer

A)   a difference in pay due to nonmonetary characteristics of different jobs.
B)   a high wage paid by employers to entice workers to be more productive.
C)   the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
D)   due only to difference in the productivity of workers with different skills.E) A) and B)
F) None of the above

Question 4

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

Question 5

List three reasons why wages could be set above the equilibrium wage.

Accepted Answer

minimum-wage laws
ma...

Question 6

In the presence of discrimination by customers,

Accepted Answer

A)   market forces nevertheless always work to prevent discriminatory wage differentials.
B)   discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits.
C)   discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination.
D)   discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government.E) None of the above
F) C) and D)

Question 7

Lucy and Lincoln are salespeople working for the same company with equal skills, ability, and experience. Both are paid a small base salary but the majority of their compensation is in the form of a commission, which is a percentage of the sales they make. Lucy earns more each year than Lincoln. What can you conclude about Lucy and Lincoln?

Accepted Answer

Lucy is more product...

Question 8

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

Accepted Answer

A)   The job does not require specialized skills.
B)   The job is easy.
C)   The job is incredibly dull.
D)   The job has minimal risk of injury.E) A) and B)
F) A) and D)

Question 9

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Accepted Answer

A)   increase workers' productivity and increase their wages.
B)   increase workers' productivity but leave their wages unaffected.
C)   leave workers' productivity unaffected but increase their wages.
D)   leave workers' productivity and wages unaffected.E) A) and D)
F) B) and D)

Question 10

Tiffany has just graduated from Stanford University and has applied for a job as an engineer at a manufacturing plant. The manufacturer decides to offer Tiffany a job because it perceives she's gained valuable skills while at Stanford. To which of the following views of education does the manufacturer subscribe?

Accepted Answer

A)   signaling
B)   human-capital view
C)   compensating-differentials
D)   superstarE) A) and B)
F) A) and C)

Question 11

Which of the following is an example of human capital for a college economics professor?

Accepted Answer

A)   years of experience
B)   "clickers" which interface with an in­class computer system and display the results of student "votes"
C)   chalk
D)   internet access in the classroomE) B) and C)
F) A) and D)

Question 12

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Accepted Answer

A) True 
 B)False

Question 13

Nancy and Sheila are both loan officers who started working for their current employer during the same year, graduated from the same university with bachelors' degrees in economics, and achieved similar performance reviews. Nancy earned a master's degree last year. If Nancy earns a higher annual salary than Sheila because she has more formal education, the employer is

Accepted Answer

A)   basing pay on experience.
B)   paying efficiency wages.
C)   practicing discrimination.
D)   rewarding increases in human capital.E) None of the above
F) A) and D)

Question 14

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Accepted Answer

A)   because the salaries paid to professional athletes exhibit the superstar phenomenon, which is highly correlated with discrimination
B)   because all four United States professional sports leagues (football, basketball, hockey, and baseball)  require discrimination studies every five years
C)   because nonwhites comprise a majority of starters for many professional sports teams
D)   because the wide availability of performance statistics allows economists to control for individual player productivity in ways that are difficult to do for other types of firmsE) B) and D)
F) A) and D)

Question 15

Figure 19-7 
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?

Accepted Answer

The answer of Figure 19-7 
-Refer to Figure 19-7. The...

Question 16

Which of the following statements is not correct?

Accepted Answer

A)   Male workers with good looks tend to earn more than male workers with average looks
B)   If discriminating wage differentials persist in competitive markets, it is primarily because employers chose to discriminate even in spite of customer preferences.
C)   A higher level of human capital raises a worker's wages.
D)   In competitive markets, workers are paid a wage equal to the value of their marginal product.E) A) and B)
F) C) and D)

Question 17

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Accepted Answer

A)   Courtney is beautiful and Nicole is not.
B)   Courtney is 40 years old and Nicole is 60 years old.
C)   Courtney works the night shift and Nicole works the day shift.
D)   Courtney attended on the job-training seminars which allows her to do tasks Nicole is not qualified for.E) A) and D)
F) A) and C)

Question 18

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Accepted Answer

A)   compensating differentials.
B)   the increased recognition that a larger stock of human capital usually leads to higher earnings.
C)   technological progress.
D)   the decreasing importance of international trade.E) All of the above
F) None of the above

Question 19

Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the

Accepted Answer

A)   credit analysts more as a compensating differential.
B)   sales people more as a compensating differential.
C)   same salary for both positions because they require the same skill level.
D)   same salary for both positions because it would be illegal to do otherwise.E) All of the above
F) B) and D)

Question 20

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Accepted Answer

A)   signaling theory
B)   human-capital theory
C)   physical-capital theory
D)   the efficient-market hypothesisE) B) and C)
F) All of the above

Exam 19: Earnings and Discrimination

Which of the following is an example of human capital for a college economics professor?

Correct Answer
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Why do economists study sports teams when looking for evidence of labor-market discrimination?

Correct Answer
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Correct Answer
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Correct Answer
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The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

List three reasons why wages could be set above the equilibrium wage.

Correct Answer
verified
minimum-wage laws
ma...
View Answer

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct Answer
verified

A compensating differential is

Correct Answer
verified

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct Answer
verified

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Correct Answer
verified

Correct Answer
verified
Lucy is more product...
View Answer

Correct Answer
verified
Women will...
View Answer

Correct Answer
verified

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

Correct Answer
verified

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Correct Answer
verified

In the presence of discrimination by customers,

Correct Answer
verified

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct Answer
verified

Figure 19-7 -Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?

Correct Answer
verified

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Which of the following is an example of human capital for a college economics professor?

Correct AnswerverifiedShow Answer

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

List three reasons why wages could be set above the equilibrium wage.

Correct Answerverifiedminimum-wage lawsma...View AnswerShow Answer

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct AnswerverifiedShow Answer

A compensating differential is

Correct AnswerverifiedShow Answer

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct AnswerverifiedShow Answer

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedLucy is more product...View AnswerShow Answer

Correct AnswerverifiedWomen will...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Correct AnswerverifiedShow Answer

In the presence of discrimination by customers,

Correct AnswerverifiedShow Answer

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct AnswerverifiedShow Answer

Figure 19-7 -Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?

Correct AnswerverifiedShow Answer

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Correct AnswerverifiedShow 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
verified
minimum-wage laws
ma...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Lucy is more product...
View Answer

Correct Answer
verified
Women will...
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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