Question 1

A signaling theory of education suggests that

Accepted Answer

A)  people who attend college are more likely to capture a "beauty premium."
B)  education is a signal of social status.
C)  education does not necessarily increase productivity.
D)  education will sever the link between innate ability and compensation.E) C) and D)
F) B) and C)

Question 2

Many kindergarten teachers have advanced education degrees, yet they have lower average earnings than other individuals with similar education levels. A potential explanation for the differences in earnings is that kindergarten teachers

Accepted Answer

A)  have more pleasant working conditions.
B)  have less pleasant working conditions.
C)  work longer hours.
D)  must pass certification tests.E) A) and C)
F) B) and C)

Question 3

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Accepted Answer

A)  the human-capital view of education.
B)  the signaling view of education.
C)  both the human-capital and the signaling view of education.
D)  neither the human-capital nor the signaling view of education.E) A) and B)
F) A) and C)

Question 4

When the supply of workers is plentiful, one would predict that market wages would be

Accepted Answer

A)  determined outside the domain of economic theory.
B)  determined solely by factors that affect demand.
C)  low, other things equal.
D)  high, other things equal.E) All of the above
F) B) and C)

Question 5

Which of the following helps to explain the differences in earnings in the United States?

Accepted Answer

A)  ability, effort, and chance
B)  compensating differentials
C)  physical attractiveness
D)  All of the above are correct.E) A) and B)
F) All of the above

Question 6

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Accepted Answer

The answer of Among female workers over age 25, about...

Question 7

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

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

Question 9

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Accepted Answer

A)  Doctors have the stress of being responsible for other peoples' lives while bankers do not.
B)  Doctors are on call to work nights and weekends, while bankers work traditional business hours.
C)  Doctors must pay for malpractice insurance in case they are sued for a mistake on the job.
D)  All of the above are compensating differentials.E) All of the above
F) B) and D)

Question 10

Table 19-2  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-2. What are two possible hypotheses to explain the changes in relative demand for high-skilled workers and low-skilled workers in recent years?

Accepted Answer

increased internatio...

Question 11

Which of the following is an example of human capital for a college economics professor?

Accepted Answer

A)  years of experience
B)  "clickers" which interface with an in-class computer system and display the results of student "votes"
C)  chalk
D)  internet access in the classroomE) A) and B)
F) None of the above

Question 12

In the country of Freedonia, men and women have the same level of education and choose different forms of work in the same proportions. The only real difference is that men typically stay home to raise young children, returning to the work force after their children enter elementary school. If no discrimination exists, then we would expect that, on average,

Accepted Answer

A)  women would earn less than men.
B)  women would earn more than men.
C)  men and women would earn the same wage.
D)  wage differences between men and women would be due to differences in beauty.E) A) and C)
F) None of the above

Question 13

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Accepted Answer

compensati...

Question 14

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)  and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then

Accepted Answer

A)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical.
B)  the equilibrium wage in the "bald" market will eventually fall.
C)  the equilibrium wage in the "hairy" market will eventually rise.
D)  wages in the market for barbers can never be in equilibrium.E) A) and D)
F) A) and C)

Question 15

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

Accepted Answer

A)  woman is paid roughly the same as the median white woman.
B)  woman is paid roughly the same as the median black man.
C)  man is paid 21 percent less than the median white man.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 16

Which of the following factors affects the marginal productivity of a worker?

Accepted Answer

A)  human capital
B)  the worker's disposable income
C)  compensating wage differentials
D)  discrimination based on age, race, or genderE) A) and D)
F) All of the above

Question 17

Which of the following is the most likely outcome of raising the minimum wage?

Accepted Answer

A)  an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
B)  an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms
C)  a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms
D)  a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firmsE) A) and B)
F) None of the above

Question 18

Figure 19-1 
-Refer to Figure 19-1. If the minimum wage in this market is $8, then

Accepted Answer

A)  employment is 10 million
B)  employment is 12 million
C)  there is a surplus of 1 million workers
D)  there is a surplus of 3 million workersE) A) and D)
F) B) and C)

Question 19

Lucy and Lincoln are salespeople working for the same company with equal skills, ability, and experience. Both are paid a small base salary but the majority of their compensation is in the form of a commission, which is a percentage of the sales they make. Lucy earns more each year than Lincoln. What can you conclude about Lucy and Lincoln?

Accepted Answer

Lucy is more product...

Question 20

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Accepted Answer

A)  the theory of efficiency wages
B)  the marginal-productivity theory
C)  human-capital theory
D)  signaling theoryE) All of the above
F) A) and B)

Exam 19: Earnings and Discrimination

Which of the following factors affects the marginal productivity of a worker?

Correct Answer
verified

When the supply of workers is plentiful, one would predict that market wages would be

Correct Answer
verified

Labor-market discrimination is evident when

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

A signaling theory of education suggests that

Correct Answer
verified

Many kindergarten teachers have advanced education degrees, yet they have lower average earnings than other individuals with similar education levels. A potential explanation for the differences in earnings is that kindergarten teachers

Correct Answer
verified

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Correct Answer
verified

Correct Answer
verified

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Correct Answer
verified

Which of the following helps to explain the differences in earnings in the United States?

Correct Answer
verified

Figure 19-1 -Refer to Figure 19-1. If the minimum wage in this market is $8, then

Correct Answer
verified

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct Answer
verified

Which of the following is an example of human capital for a college economics professor?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is the most likely outcome of raising the minimum wage?

Correct Answer
verified

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Correct Answer
verified

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Correct Answer
verified
compensati...
View Answer

Correct Answer
verified

Correct Answer
verified
Lucy is more product...
View Answer

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. What are two possible hypotheses to explain the changes in relative demand for high-skilled workers and low-skilled workers in recent years?

Correct Answer
verified
increased internatio...
View Answer

Exam 19: Earnings and Discrimination

Which of the following factors affects the marginal productivity of a worker?

Correct AnswerverifiedShow Answer

When the supply of workers is plentiful, one would predict that market wages would be

Correct AnswerverifiedShow Answer

Labor-market discrimination is evident when

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

A signaling theory of education suggests that

Correct AnswerverifiedShow Answer

Many kindergarten teachers have advanced education degrees, yet they have lower average earnings than other individuals with similar education levels. A potential explanation for the differences in earnings is that kindergarten teachers

Correct AnswerverifiedShow Answer

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Correct AnswerverifiedShow Answer

Which of the following helps to explain the differences in earnings in the United States?

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1. If the minimum wage in this market is $8, then

Correct AnswerverifiedShow Answer

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital for a college economics professor?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is the most likely outcome of raising the minimum wage?

Correct AnswerverifiedShow Answer

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Correct AnswerverifiedShow Answer

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Correct Answerverifiedcompensati...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedLucy is more product...View AnswerShow Answer

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. What are two possible hypotheses to explain the changes in relative demand for high-skilled workers and low-skilled workers in recent years?

Correct Answerverifiedincreased internatio...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
compensati...
View Answer

Correct Answer
verified

Correct Answer
verified
Lucy is more product...
View Answer

Correct Answer
verified
increased internatio...
View Answer