Question 1

Which of the following differences between men and women could explain wage differences that are not due to discrimination?

Accepted Answer

A)   attitudes toward competition
B)   human capital acquisition
C)   compensating differentials
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 2

Figure 19-1 
-Refer to Scenario 19-1.Which of the following is the best strategy for a profit-maximizing firm,assuming customers do not discriminate?

Accepted Answer

A)   Hire more men to ensure high productivity.
B)   Hire more women at lower wages and incur lower costs than firms hiring men.
C)   Avoid hiring women so they do not have to pay higher wages.
D)   Hire an equal number of men and women and pay them different wages according to the market.E) A) and B)
F) C) and D)

Question 3

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Accepted Answer

A)   Workers in the market are unskilled and not represented by a union,and their wage exceeds both the equilibrium wage and the minimum wage.
B)   Workers in the market are highly skilled and not represented by a union,and their wage exceeds the minimum wage.
C)   Workers in the market are highly skilled and represented by a union,and their wage exceeds the equilibrium wage.
D)   Employers in the market are known for reducing the workers' wage whenever they get an opportunity to do so.E) C) and D)
F) A) and D)

Question 4

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

Accepted Answer

A) True 
 B)False

Question 5

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Accepted Answer

A)   discrimination based on race
B)   discrimination in sports
C)   consumer discrimination
D)   discrimination based on educational attainmentE) A) and C)
F) A) and B)

Question 6

Economists found evidence of discrimination in each of the following markets except

Accepted Answer

A)   1960s baseball games
B)   baseball cards
C)   live basketball games in the 1980s
D)   current era baseball gamesE) A) and D)
F) A) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Accepted Answer

A)   The demand for both skilled and unskilled labor has increased.
B)   The demand for both skilled and unskilled labor has decreased.
C)   The demand for skilled labor relative to unskilled labor has risen.
D)   The demand for unskilled labor relative to skilled labor has risen.E) None of the above
F) B) and D)

Question 9

Nick and Daryn are both market analysts who graduated from the same university with bachelors' degrees in economics and achieved similar performance reviews.Daryn has one year more experience in his current position than does Nick.If Daryn earns a higher annual salary than Nick because he has an additional year of tenure,the employer is

Accepted Answer

A)   paying a compensating differential.
B)   rewarding increases in human capital.
C)   practicing discrimination.
D)   paying efficiency wages.E) All of the above
F) A) and B)

Question 10

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Accepted Answer

A)   labor market discrimination
B)   the choice of women to select other occupations
C)   cultural bias in primary and secondary education
D)   the inability of women to solve problems in economicsE) B) and D)
F) A) and B)

Question 11

Nurses who work in hospitals often are required to work on weekends,whereas nurses who work in doctors' offices generally only work Monday through Friday.Hospital nurses who must work on weekends are usually paid more than nurses working in doctors' offices for the same work.This difference in pay is referred to as a

Accepted Answer

A)   discriminatory wage practice.
B)   compensating differential.
C)   wage inequity.
D)   a market inefficiency.E) None of the above
F) A) and B)

Question 12

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Accepted Answer

A)   natural ability.
B)   geographic location of employment.
C)   chance.
D)   work effort.E) None of the above
F) A) and B)

Question 13

Which of the following is an example of a compensating differential?

Accepted Answer

A)   Two workers with different levels of on-the-job training earn different salaries.
B)   Two workers whose jobs entail different working conditions earn different salaries.
C)   Two workers whose jobs require different levels of technical expertise earn different salaries.
D)   Two workers with different levels of natural ability earn different salaries.E) A) and D)
F) A) and C)

Question 14

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.

Accepted Answer

Consumers use personal preferences when ...

Question 15

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential to employers.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Accepted Answer

A)   most countries but not in the United States.
B)   the United States but not in most other countries.
C)   the United States and in most other countries.
D)   None of the above is correct;the evidence fails to indicate that human capital is a significant factor in determining earnings anywhere in the world.E) None of the above
F) B) and C)

Question 18

The very high pay earned by the best actors and actresses is partially explained by the fact that

Accepted Answer

A)   they benefit from a compensating differential.
B)   moviegoers all want to see the very best actors,not second-rate actors.
C)   they have acting degrees from accredited acting schools.
D)   the supply of good actors is very large.E) A) and B)
F) A) and C)

Question 19

Which of the following is an example of customer discrimination?

Accepted Answer

A)   A foreign government prevents women from legally working as teachers.
B)   White NBA fans prefer to attend games where the teams have more white players in the starting lineups.
C)   Nurses who work the night shift earn more than nurses who work the day shift.
D)   All of the above could be correct.E) B) and C)
F) A) and D)

Question 20

The idea of paying workers an efficiency wage is that

Accepted Answer

A)   doing so is more efficient than paying them the market wage.
B)   paying workers less gives them the incentive to work harder.
C)   workers and management gain at the expense of the stockholders of the company.
D)   workers have the incentive to work harder,thus increasing their marginal productivity.E) None of the above
F) B) and D)

Exam 19: Earnings and Discrimination

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

Correct Answer
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Correct Answer
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Which of the following is an example of a compensating differential?

Correct Answer
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Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Correct Answer
verified

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Correct Answer
verified

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Correct Answer
verified

The idea of paying workers an efficiency wage is that

Correct Answer
verified

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential to employers.

Correct Answer
verified

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Correct Answer
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Which of the following is an example of customer discrimination?

Correct Answer
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The very high pay earned by the best actors and actresses is partially explained by the fact that

Correct Answer
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The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

Correct Answer
verified

Economists found evidence of discrimination in each of the following markets except

Correct Answer
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Correct Answer
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Studies have shown that union workers earn about

Correct Answer
verified

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.

Correct Answer
verified
Consumers use personal preferences when ...
View Answer

Which of the following differences between men and women could explain wage differences that are not due to discrimination?

Correct Answer
verified

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Correct Answer
verified

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Correct Answer
verified

Figure 19-1 -Refer to Scenario 19-1.Which of the following is the best strategy for a profit-maximizing firm,assuming customers do not discriminate?

Correct Answer
verified

Exam 19: Earnings and Discrimination

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of a compensating differential?

Correct AnswerverifiedShow Answer

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Correct AnswerverifiedShow Answer

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Correct AnswerverifiedShow Answer

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Correct AnswerverifiedShow Answer

The idea of paying workers an efficiency wage is that

Correct AnswerverifiedShow Answer

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential to employers.

Correct AnswerverifiedShow Answer

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Correct AnswerverifiedShow Answer

Which of the following is an example of customer discrimination?

Correct AnswerverifiedShow Answer

The very high pay earned by the best actors and actresses is partially explained by the fact that

Correct AnswerverifiedShow Answer

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

Correct AnswerverifiedShow Answer

Economists found evidence of discrimination in each of the following markets except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Studies have shown that union workers earn about

Correct AnswerverifiedShow Answer

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.

Correct AnswerverifiedConsumers use personal preferences when ...View AnswerShow Answer

Which of the following differences between men and women could explain wage differences that are not due to discrimination?

Correct AnswerverifiedShow Answer

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Correct AnswerverifiedShow Answer

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Scenario 19-1.Which of the following is the best strategy for a profit-maximizing firm,assuming customers do not discriminate?

Correct AnswerverifiedShow Answer

Correct Answer
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Consumers use personal preferences when ...
View Answer

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Correct Answer
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