Question 1

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 D)
F) B) and D)

Question 2

The wage difference between jobs that require education and those that don't

Accepted Answer

A)   is not likely to be related to productivity differences.
B)   is a barrier to obtaining an education.
C)   does not affect the supply of workers in the different labor markets.
D)   encourages workers to bear the cost of acquiring education.E) A) and C)
F) A) and D)

Question 3

Scenario 19-2
Travis,a student at a community college,is considering what he should do for summer employment.Two recruiters show up at his school in search of summer workers.Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa.Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park.
-Refer to Scenario 19-2.Travis is carefully considering the options that each recruiter presents.On the basis of knowledge obtained in his economics class,Travis concludes that

Accepted Answer

A)   if the job in Africa has a lot of job satisfaction,the wage will be higher.
B)   if the job in Africa has a lot of job satisfaction,the wage will be lower.
C)   if the job cleaning motel rooms is disagreeable,the wage will be lower.
D)   if the job cleaning motel rooms is agreeable,the wage will be higher.E) All of the above
F) C) and D)

Question 4

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites,it has been said that "the disease is political even if the symptom is economic." What does this mean?

Accepted Answer

A)   Wage differences persist because the political system has failed to enact laws to equalize wages among all groups.
B)   Wage differences exist because of past discrimination on the part of political bodies such as city councils and school boards.
C)   Wage differences exist because of the differences in the political views of the different groups.
D)   Wage differences exist because the political system is biased against paying compensating differentials.E) C) and D)
F) All of the above

Question 5

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Accepted Answer

A) True 
 B)False

Question 6

Jane and John are twins who attended grammar school through college together.Jane and John both got jobs at a brokerage firm after graduating from college with the same major.They both work equally hard.Jane earns $43,000 a year,and John earns $69,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Jane has less human capital than John.
B)   Jane has more human capital than John.
C)   John has been discriminated against because he is male.
D)   Jane has been discriminated against because she is female.E) A) and B)
F) A) and C)

Question 7

The number of American workers employed in the manufacturing sector has

Accepted Answer

A)   declined from 30 percent in the 1940s to 10 percent today.
B)   increased from 10 percent in the 1940s to 30 percent today.
C)   declined,which has contributed to the decline in global industrial output.
D)   increased more rapidly than the increase in farming jobs.E) A) and B)
F) A) and C)

Question 8

A worker association that bargains with employers over wages and working conditions is called

Accepted Answer

A)   a strike.
B)   an oligopoly.
C)   a firm.
D)   a union.E) B) and D)
F) B) and C)

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

Question 10

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling,years of experience,age and job characteristics only explained about one-half of the difference in wages.Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may in...

Question 11

Business owners who care only about making money are

Accepted Answer

A)   likely to discriminate against certain groups of workers.
B)   likely to be replaced by discriminating businesses.
C)   more concerned about racial discrimination than gender discrimination.
D)   at an advantage when competing against those who practice discrimination.E) None of the above
F) B) and C)

Question 12

It is likely that,if we could measure the quality as well as the quantity of education,

Accepted Answer

A)   the human-capital argument would become less compelling as a means of explaining wage differentials between white workers and black workers.
B)   the human-capital argument would become less compelling as a means of explaining wage differentials between male workers and female workers.
C)   wage differentials between white workers and black workers would be more puzzling than they are now.
D)   wage differentials between white workers and black workers would be more fully explained.E) A) and D)
F) None of the above

Question 13

Scenario 19-5
Billy works for the local piano moving company part-time after school.Billy has worked for the company for two years but still hasn't received a wage increase,even though newer employees have received raises.Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks.Billy believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5.Which of the following statements would weaken Billy's case against his employer?

Accepted Answer

A)   Billy only works part-time;as a result,he has fewer hours of experience even though he has been with the company for more years.
B)   Billy complains of lower back problems;as a result,he frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house.
C)   The other employees have high school diplomas,but Billy did not graduate from high school.
D)   All of the above statements would weaken Billy's case.E) B) and C)
F) All of the above

Question 14

Which of the following statements is not correct?

Accepted Answer

A)   It is possible that additional education will increase a worker's wage without increasing the worker's productivity.
B)   If discriminating wage differentials persist in competitive markets,it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
C)   An efficiency wage corresponds to a lower wage that a nondiscriminating employer pays to a worker because a discriminating employer won't hire her.
D)   In competitive markets,workers are paid a wage equal to the value of their marginal product.E) B) and D)
F) B) and C)

Question 15

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Accepted Answer

A)   rise,and the wages of unskilled labor in Hapland will fall.
B)   fall,and the wages of unskilled labor in Hapland will rise.
C)   rise,and the wages of unskilled labor in Hapland will rise.
D)   fall,and the wages of unskilled labor in Hapland will fall.E) A) and B)
F) B) and C)

Question 16

Which of the following statements is not correct?

Accepted Answer

A)   If the signaling theory of education is correct,additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education.
B)   The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive.
C)   Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits.
D)   The theory of compensating wage differentials reflects the different skills,abilities,and productivity of workers.E) B) and C)
F) None of the above

Question 17

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 18

According to the signaling theory of education,better-educated workers

Accepted Answer

A)   are likely to be high-ability workers.
B)   improve their marginal productivity through education.
C)   are in scarce supply in less developed countries.
D)   can only find low-skilled jobs due to technology.E) A) and D)
F) None of the above

Question 19

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses.Both hypotheses

Accepted Answer

A)   suggest that demand and supply conditions have played a less important role in determining workers' wages in recent years.
B)   suggest that,over time,the demand for skilled labor has risen relative to the demand for unskilled labor.
C)   emphasize the shrinking importance of international trade in recent years.
D)   emphasize the growing importance of women and teenagers in the workforce in recent years.E) None of the above
F) C) and D)

Question 20

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Which of the following statements is not correct?

Correct Answer
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The number of American workers employed in the manufacturing sector has

Correct Answer
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A worker association that bargains with employers over wages and working conditions is called

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses.Both hypotheses

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Correct Answer
verified

It is likely that,if we could measure the quality as well as the quantity of education,

Correct Answer
verified

The wage difference between jobs that require education and those that don't

Correct Answer
verified

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites,it has been said that "the disease is political even if the symptom is economic." What does this mean?

Correct Answer
verified

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Correct Answer
verified

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 would argue that the gender wage gap is narrowing because of efficiency wages.

Correct Answer
verified

Correct Answer
verified
Other factors may in...
View Answer

Business owners who care only about making money are

Correct Answer
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According to the signaling theory of education,better-educated workers

Correct Answer
verified

Exam 19: Earnings and Discrimination

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The number of American workers employed in the manufacturing sector has

Correct AnswerverifiedShow Answer

A worker association that bargains with employers over wages and working conditions is called

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses.Both hypotheses

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Correct AnswerverifiedShow Answer

It is likely that,if we could measure the quality as well as the quantity of education,

Correct AnswerverifiedShow Answer

The wage difference between jobs that require education and those that don't

Correct AnswerverifiedShow Answer

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites,it has been said that "the disease is political even if the symptom is economic." What does this mean?

Correct AnswerverifiedShow Answer

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

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 would argue that the gender wage gap is narrowing because of efficiency wages.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOther factors may in...View AnswerShow Answer

Business owners who care only about making money are

Correct AnswerverifiedShow Answer

According to the signaling theory of education,better-educated workers

Correct AnswerverifiedShow 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Other factors may in...
View Answer

Correct Answer
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Correct Answer
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