Question 1

Firms that operate in competitive product markets and choose to practice discrimination in hiring workers

Accepted Answer

A)   will survive if they increase production and garner a larger market share.
B)   will eventually earn zero economic profits.
C)   will survive as long as they are willing to have a smaller market share.
D)   are likely to eventually go out of business.E) B) and C)
F) A) and B)

Question 2

Which of the following is not an explanation for why better educated workers earn more,on average,than less educated workers?

Accepted Answer

A)   The higher wages may be a compensating differential for the cost of acquiring the education.
B)   Workers with a college degree signal their higher abilities to potential employers.
C)   Skilled labor is increasingly becoming a substitute for unskilled labor,which raises the earnings of workers with more education.
D)   Better educated workers are more productive,on average.E) C) and D)
F) None of the above

Question 3

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 4

The organized withdrawal of labor from a firm by a union is called

Accepted Answer

A)   a strike.
B)   a bargain.
C)   a monopoly.
D)   a tournament.E) A) and C)
F) All of the above

Question 5

Consumers are often a primary source of discrimination in labor markets.

Accepted Answer

A) True 
 B)False

Question 6

The "superstar" phenomenon can apply to which of these jobs?

Accepted Answer

A)   high-school teacher
B)   anchorperson for a national news program
C)   heart surgeon
D)   carpenter.E) A) and B)
F) A) and C)

Question 7

Which of the following statements represents the idea behind signaling in education?

Accepted Answer

A)   Education can turn an unproductive person into a productive person.
B)   Education increases the marginal productivity of naturally productive workers.
C)   The more naturally productive people are more inclined to educate themselves.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 8

Given that the median male is better paid than the median female,which of the following is a valid explanation for wage differences?

Accepted Answer

A)   compensating differentials
B)   differences in human capital
C)   discrimination
D)   All of the above can be a partial explanation.E) B) and C)
F) None of the above

Question 9

Efficiency wages decrease employee effort.

Accepted Answer

A) True 
 B)False

Question 10

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Accepted Answer

A) True 
 B)False

Question 11

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 motel job also requires an ability to do general plumbing repairs,the wage offer will be higher than otherwise.
B)   if the food distribution job has a requirement for special training or certification,the wage offer will be lower than otherwise.
C)   if the food distribution job exposes him to the Ebola virus,the wage will be low.
D)   if the motel job involves substantial amounts of driving for supplies,the wage offer will be lower than otherwise.E) A) and B)
F) All of the above

Question 12

Labor-market discrimination is evident when

Accepted Answer

A)   wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity.
B)   wage rates differ for similar jobs.
C)   consumers prefer to shop at some stores,and not at others.
D)   wages reflect workers' human capital.E) A) and D)
F) C) and D)

Question 13

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)   The characteristics of workers,such as their education and experience,the characteristics of jobs,such as their pleasantness or unpleasantness,and the presence or absence of discrimination by employers all determine equilibrium wages.
B)   Labor unions,minimum wage laws,and efficiency wages all may increase wages above their equilibrium level.
C)   Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)   Discrimination by employers against a group of workers may artificially lower wages for that group.E) None of the above
F) A) and D)

Question 14

John is an Asian 23-year-old male,and Ken is an Asian 43-year-old male.Both John and Ken are economics majors,and they graduated from the same college with the same GPA - John in 2006 and Ken in 1986.John and Ken both are both financial advisers at the same brokerage firm.John earns $52,000 a year,and Ken earns $88,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   John has more human capital than Ken.
B)   John has less human capital than Ken.
C)   John has been discriminated against because he is young.
D)   Ken has been discriminated against because he is old.E) C) and D)
F) A) and D)

Question 15

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

Question 16

In the signaling theory of education,

Accepted Answer

A)   schooling itself does not lead to more productive workers.
B)   chance plays more of a role than in the human-capital theory.
C)   schooling enhances worker productivity.
D)   compensating differentials do not matter.E) A) and D)
F) B) and D)

Question 17

Efficiency wages will raise the quantity of labor supplied to the market.

Accepted Answer

A) True 
 B)False

Question 18

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Accepted Answer

A) True 
 B)False

Question 19

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Accepted Answer

A) True 
 B)False

Question 20

The return to investment in human capital is observed

Accepted Answer

A)   only when workers are assigned identical tasks.
B)   in the wage differential between workers.
C)   in the high school dropout rate in inner-city urban school districts.
D)   in the low wages of educated factory workers.E) B) and C)
F) C) and D)

Exam 19: Earnings and Discrimination

Given that the median male is better paid than the median female,which of the following is a valid explanation for wage differences?

Correct Answer
verified

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct Answer
verified

Consumers are often a primary source of discrimination in labor markets.

Correct Answer
verified

In the signaling theory of education,

Correct Answer
verified

Correct Answer
verified

Labor-market discrimination is evident when

Correct Answer
verified

Which of the following statements does not accurately describe the market for labor?

Correct Answer
verified

Firms that operate in competitive product markets and choose to practice discrimination in hiring workers

Correct Answer
verified

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

The return to investment in human capital is observed

Correct Answer
verified

Which of the following statements represents the idea behind signaling in education?

Correct Answer
verified

Which of the following is not an explanation for why better educated workers earn more,on average,than less educated workers?

Correct Answer
verified

Efficiency wages decrease employee effort.

Correct Answer
verified

The organized withdrawal of labor from a firm by a union is called

Correct Answer
verified

Correct Answer
verified

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct Answer
verified

Correct Answer
verified

The "superstar" phenomenon can apply to which of these jobs?

Correct Answer
verified

Efficiency wages will raise the quantity of labor supplied to the market.

Correct Answer
verified

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Given that the median male is better paid than the median female,which of the following is a valid explanation for wage differences?

Correct AnswerverifiedShow Answer

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct AnswerverifiedShow Answer

Consumers are often a primary source of discrimination in labor markets.

Correct AnswerverifiedShow Answer

In the signaling theory of education,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor-market discrimination is evident when

Correct AnswerverifiedShow Answer

Which of the following statements does not accurately describe the market for labor?

Correct AnswerverifiedShow Answer

Firms that operate in competitive product markets and choose to practice discrimination in hiring workers

Correct AnswerverifiedShow Answer

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

The return to investment in human capital is observed

Correct AnswerverifiedShow Answer

Which of the following statements represents the idea behind signaling in education?

Correct AnswerverifiedShow Answer

Which of the following is not an explanation for why better educated workers earn more,on average,than less educated workers?

Correct AnswerverifiedShow Answer

Efficiency wages decrease employee effort.

Correct AnswerverifiedShow Answer

The organized withdrawal of labor from a firm by a union is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The "superstar" phenomenon can apply to which of these jobs?

Correct AnswerverifiedShow Answer

Efficiency wages will raise the quantity of labor supplied to the market.

Correct AnswerverifiedShow Answer

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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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