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. If the firms in this market are profit-maximizers and customers do not care if a woman or a man works on their car, what will likely happen?

Accepted Answer

Women will be hired ...

Question 2

Black men earn an average of 21% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar (i) 
Years of work experience.(ii) 
Years of education.
(iii) 
Occupations.
(iv) 
Quality of education.

Accepted Answer

A)  (i)  and (ii)  only
B)  (iii)  and (iv)  only
C)  (ii)  only
D)  (i) , (ii) , (iii) , and (iv) E) B) and D)
F) B) and C)

Question 3

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

Accepted Answer

A)  Jason only works part-time; as a result, he has fewer hours of experience even though he has been with the company longer.
B)  Jason doesn't accomplish as much in an hour as other workers doing the same job.
C)  Other workers that got raises moved to the night shift or agreed to work weekends.
D)  All of the above statements would weaken Jason's case.E) A) and C)
F) All of the above

Question 4

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)  An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
B)  An employer is more likely to grant an interview to a person graduating from the local community college than from Yale.
C)  An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
D)  An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."E) None of the above
F) B) and D)

Question 5

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Accepted Answer

The answer of Many studies of wage discrimination have been...

Question 6

The theory of efficiency wages asserts that

Accepted Answer

A)  employers set wages based on each employee's productivity.
B)  employers strive to hold wages below equilibrium levels.
C)  employers may find it profitable to pay above-equilibrium wages.
D)  efficient workers actually earn lower wages than those earned by inefficient workers.E) A) and C)
F) All of the above

Question 7

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S2, how many fewer people are employed if a minimum wage of $8 per hour is imposed on this market as compared to allowing wages to adjust to balance labor demand and labor supply?

Accepted Answer

100

Question 8

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

Accepted Answer

A)  is a superstar.
B)  belongs to a labor union.
C)  has more human capital.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 9

Which of the following does not affect the wages a worker earns?

Accepted Answer

A)  natural ability
B)  effort
C)  chance
D)  All of the above affect the wages a worker earns.E) None of the above
F) B) and C)

Question 10

The theory of efficiency wages challenges the assumption that

Accepted Answer

A)  workers are efficient.
B)  workers have an incentive to shirk their responsibilities to their employers.
C)  wages must always adjust to balance labor supply and labor demand.
D)  firms sometimes choose to pay their workers above-equilibrium wages.E) None of the above
F) All of the above

Question 11

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Accepted Answer

A)  risen as the demand for skilled labor has increased relative to the demand for unskilled labor.
B)  risen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
C)  fallen as the demand for skilled labor has increased relative to the demand for unskilled labor.
D)  fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.E) A) and D)
F) B) and C)

Question 12

In the early twentieth century, streetcars in many southern cities were segregated by race. This racial segregation was the result of

Accepted Answer

A)  laws that required such segregation.
B)  long-standing southern traditions about which the law was silent.
C)  streetcar firms trying to maximize profits.
D)  streetcar firms trying to minimize costs.E) A) and C)
F) A) and B)

Question 13

Workers who work the night shift are often paid more than those who do identical work on the day shift. This is referred to as a

Accepted Answer

A)  discriminatory wage practice.
B)  compensating differential.
C)  wage inequity.
D)  a market inefficiency.E) B) and C)
F) A) and D)

Question 14

A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B.

Accepted Answer

A)  The company likely needs to pay workers in location A more.
B)  The company likely needs to pay workers in location B more.
C)  It's not clear if the company would need to pay more to workers in location A or location B.
D)  The company must pay workers the same amount.E) A) and B)
F) A) and C)

Question 15

Which of the following is the most important contributor to human capital?

Accepted Answer

A)  education
B)  effort
C)  chance
D)  physical strengthE) B) and C)
F) A) and D) A

Question 16

Which of the following statements is not correct?

Accepted Answer

A)  Both the human capital theory and the signaling theory of education could explain why college graduates earn more than high school graduates.
B)  The signaling theory of education suggests that the ability to complete a college degree is correlated with the ability to perform well in the labor market.
C)  If the human capital theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.
D)  If the signaling theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.E) A) and B)
F) A) and C)

Question 17

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Accepted Answer

The answer of According to economists Hamermesh and Biddle, how...

Question 18

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Accepted Answer

The answer of Figure 19-6 
-Refer to Figure 19-6. Given...

Question 19

According to evidence provided by the U.S. government, the median black

Accepted Answer

A)  man earns more than the median black woman.
B)  woman earns less than the median white woman
C)  man earns less than the median white man.
D)  All of the above are correct.E) B) and C)
F) A) and C)

Question 20

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

Exam 19: Earnings and Discrimination

Correct Answer
verified
Women will be hired ...
View Answer

Correct Answer
verified

Correct Answer
verified

Which of the following represents an example of labor-market discrimination?

Correct Answer
verified

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Correct Answer
verified

The theory of efficiency wages asserts that

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how many fewer people are employed if a minimum wage of $8 per hour is imposed on this market as compared to allowing wages to adjust to balance labor demand and labor supply?

Correct Answer
verified
100

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

Correct Answer
verified

Which of the following does not affect the wages a worker earns?

Correct Answer
verified

The theory of efficiency wages challenges the assumption that

Correct Answer
verified

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Correct Answer
verified

In the early twentieth century, streetcars in many southern cities were segregated by race. This racial segregation was the result of

Correct Answer
verified

Workers who work the night shift are often paid more than those who do identical work on the day shift. This is referred to as a

Correct Answer
verified

A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B.

Correct Answer
verified

Which of the following is the most important contributor to human capital?

Correct Answer
verified
A

Which of the following statements is not correct?

Correct Answer
verified

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Correct Answer
verified

According to evidence provided by the U.S. government, the median black

Correct Answer
verified

A compensating differential is

Correct Answer
verified
A

Exam 19: Earnings and Discrimination

Correct AnswerverifiedWomen will be hired ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following represents an example of labor-market discrimination?

Correct AnswerverifiedShow Answer

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Correct AnswerverifiedShow Answer

The theory of efficiency wages asserts that

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how many fewer people are employed if a minimum wage of $8 per hour is imposed on this market as compared to allowing wages to adjust to balance labor demand and labor supply?

Correct Answerverified100

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

Correct AnswerverifiedShow Answer

Which of the following does not affect the wages a worker earns?

Correct AnswerverifiedShow Answer

The theory of efficiency wages challenges the assumption that

Correct AnswerverifiedShow Answer

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Correct AnswerverifiedShow Answer

In the early twentieth century, streetcars in many southern cities were segregated by race. This racial segregation was the result of

Correct AnswerverifiedShow Answer

Workers who work the night shift are often paid more than those who do identical work on the day shift. This is referred to as a

Correct AnswerverifiedShow Answer

A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B.

Correct AnswerverifiedShow Answer

Which of the following is the most important contributor to human capital?

Correct AnswerverifiedA

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Correct AnswerverifiedShow Answer

According to evidence provided by the U.S. government, the median black

Correct AnswerverifiedShow Answer

A compensating differential is

Correct AnswerverifiedA

Correct Answer
verified
Women will be hired ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
100

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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A

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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A