Question 1

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Accepted Answer

A)   One hypothesis emphasizes education, and the other emphasizes random influences.
B)   One hypothesis emphasizes education, and the other emphasizes supply and demand.
C)   One hypothesis emphasizes international trade, and the other emphasizes technology.
D)   One hypothesis emphasizes signaling, and the other emphasizes education.E) A) and D)
F) None of the above

Question 2

Major league baseball players get paid more than minor league baseball players because of

Accepted Answer

A)   compensating differentials.
B)   higher levels of educational attainment.
C)   greater abilities.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 3

In a recent U.S.presidential campaign,a lobbyist for a prominent national women's organization made the claim that women in the United States earn $0.60 for every $1.00 earned by a man.A reporter,who was prepared for this statement,asked the lobbyist why wages paid to the organization's secretarial staff (all of whom were women)were significantly below the national average if they were truly interested in raising the rates of compensation for women.If you were the lobbyist,how would you have answered this question? Do you think your answer is convincing? Explain.

Accepted Answer

The lobbyist would likely respond by cit...

Question 4

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.Which of the following would push the divers' wages higher?

Accepted Answer

A)   The job is simple.
B)   The job is fun.
C)   The job is very dangerous.
D)   The job does not require specialized training.E) A) and B)
F) All of the above

Question 5

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair.She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home.The higher wage offered by the funeral home is an example of

Accepted Answer

A)   a human capital differential.
B)   a compensating differential.
C)   signaling theory.
D)   the superstar phenomenon.E) A) and B)
F) A) and C)

Question 6

The National Collegiate Athletic Association (NCAA)has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports.Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.

Accepted Answer

Many economists would argue that the NCA...

Question 7

Which of the following is an example of discrimination in the labor market?

Accepted Answer

A)   Women earn less than men because women are more likely to be employed in occupations that pay less, such as elementary school teachers rather than electrical engineers.
B)   Women earn less than men because women have, on average, fewer years of experience in the labor force because women, on average, periodically leave the labor force to raise children.
C)   A pharmaceutical sales company pays women less than men because the company's customers, physicians and pharmacists, say that they prefer to deal with men rather than women.
D)   All of the above are examples of discrimination.E) None of the above
F) A) and B)

Question 8

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Accepted Answer

A)   a compensating differential.
B)   an efficiency wage.
C)   discrimination.
D)   compensating variation.E) A) and D)
F) C) and D)

Question 9

Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken 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 $2 per hour.
B)   higher-paying job has a compensating wage differential of $22 per hour.
C)   higher-paying job is intrinsically more attractive than the lower-paying job.
D)   factory is discriminating against Traci because she is a woman.E) A) and B)
F) B) and C)

Question 10

Figure 19-1
 
-Refer to Figure 19-1.Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region.If a living wage of $10 per hour is established in the market pictured here,we would expect

Accepted Answer

A)   employment will increase to 14 million.
B)   employment will decrease to 8 million.
C)   the wage will actually rise to $20 per hour.
D)   there will be a surplus of 14 million workers.E) A) and D)
F) A) and C)

Question 11

Sometimes wages are set above the equilibrium level when

Accepted Answer

A)   garbage collectors earn higher wages than secretaries due to compensating differentials.
B)   accountants earn more than dental technicians due to higher educational requirements.
C)   movie superstars earn more than talented plumbers.
D)   unions negotiate higher wages by threatening to strike.E) B) and D)
F) A) and C)

Question 12

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 she is black.E) None of the above
F) All of the above

Question 13

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 14

Differences in human capital are likely to

Accepted Answer

A)   be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
B)   be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination.
C)   explain some of the differences in average wage rates across age classifications.
D)   explain all of the differences in average wage rates across gender classifications.E) All of the above
F) B) and C)

Question 15

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A)   human capital acquired through education
B)   human capital acquired through job experience
C)   compensating differentials
D)   All of the above can explain wage differences.E) A) and D)
F) All of the above

Question 17

Which of the following statements is correct?

Accepted Answer

A)   The human-capital theory of education could be called a productivity-enhancing theory.
B)   The human-capital theory of education could be called a productivity-revealing theory.
C)   The signaling theory of education could be called a productivity-enhancing theory.
D)   The signaling theory of education has been disproven by a number of prominent economists.E) All of the above
F) C) and D)

Question 18

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the statements is correct?

Accepted Answer

A)   Because the male worker earns a higher salary than the female worker, the employer must be discriminating against women.
B)   If bookkeepers at most other bakeries earn equivalent salaries to pastry chefs, the employer must be discriminating against women.
C)   If starting work at 4 a.m. is an unattractive characteristic of a baker job, the employer is likely to be paying a compensating differential.
D)   All of the above could be correct.E) None of the above
F) C) and D)

Question 19

When discrimination occurs as a result of prejudice,firms do not maximize profits.

Accepted Answer

A) True 
 B)False

Question 20

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination.

Correct Answer
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Which of the following statements is correct?

Correct Answer
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Correct Answer
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Many economists would argue that the NCA...
View Answer

Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken do the same job,have the same experience,and have the same level of education.This means that the

Correct Answer
verified

Sometimes wages are set above the equilibrium level when

Correct Answer
verified

Differences in human capital are likely to

Correct Answer
verified

When discrimination occurs as a result of prejudice,firms do not maximize profits.

Correct Answer
verified

Correct Answer
verified

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair.She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home.The higher wage offered by the funeral home is an example of

Correct Answer
verified

Which of the following is an example of discrimination in the labor market?

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct Answer
verified

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Correct Answer
verified

Correct Answer
verified
The lobbyist would likely respond by cit...
View Answer

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Correct Answer
verified

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Correct Answer
verified

Which of the following can be used to help explain wage differences among different groups of workers?

Correct Answer
verified

Major league baseball players get paid more than minor league baseball players because of

Correct Answer
verified

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the statements is correct?

Correct Answer
verified

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.Which of the following would push the divers' wages higher?

Correct Answer
verified

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Correct Answer
verified

Exam 19: Earnings and Discrimination.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMany economists would argue that the NCA...View AnswerShow Answer

Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken do the same job,have the same experience,and have the same level of education.This means that the

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when

Correct AnswerverifiedShow Answer

Differences in human capital are likely to

Correct AnswerverifiedShow Answer

When discrimination occurs as a result of prejudice,firms do not maximize profits.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair.She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home.The higher wage offered by the funeral home is an example of

Correct AnswerverifiedShow Answer

Which of the following is an example of discrimination in the labor market?

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct AnswerverifiedShow Answer

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe lobbyist would likely respond by cit...View AnswerShow Answer

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Correct AnswerverifiedShow Answer

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Correct AnswerverifiedShow Answer

Which of the following can be used to help explain wage differences among different groups of workers?

Correct AnswerverifiedShow Answer

Major league baseball players get paid more than minor league baseball players because of

Correct AnswerverifiedShow Answer

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the statements is correct?

Correct AnswerverifiedShow Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.Which of the following would push the divers' wages higher?

Correct AnswerverifiedShow Answer

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Many economists would argue that the NCA...
View 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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The lobbyist would likely respond by cit...
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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