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Exam 19: Earnings and Discrimination

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Question 1

Multiple Choice

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A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was

A) a longstanding tradition of racial segregation.
B) policies implemented by the owners of streetcars.
C) laws passed by the government.
D) threats by white people to boycott the streetcars if they were forced to sit with black people.

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

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Question 2

Multiple Choice

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As a summer job, some teenagers choose to detassle corn, a job requiring long hours walking corn fields in the summer heat. Other teens take jobs working as lifeguards. Given that detassling corn is a more difficult job than working as a lifeguard, we would expect a difference in wages between the two jobs. This difference is known as

A) an efficiency wage.
B) a compensating differential.
C) a wage adjustment.
D) a minimum wage.

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

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B

Question 3

Multiple Choice

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That some schools direct females away from science and math courses is evidence of

Which of these instances would constitute labor-market discrimination? Henry receives a higher wage than Ryan. Henry and Ryan are identical in all of their labor-market characteristics except that

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.

According to proponents of the signaling theory of education,

Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?

A compensating differential is

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Figure 19-6​ -Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. If a labor union forms within the widget industry and subsequently negotiates an hourly wage of $20.00, how many hours of labor will be demanded by the widget industry?

Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people get to travel to several desirable locations, whereas the credit analysts do not leave the home office. When comparing the salaries of the two positions, it is likely that the company pays the

Which of the following professionals is most likely to generate the income of a superstar?

An effective minimum wage law will increase the quantity of labor demanded.

Figure 19-6​ -Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The market equilibrium wage is $15. If the minimum wage in the economy is $10, how many hours of labor will be demanded from firms in the widget industry?

The theory of efficiency wages asserts that

According to the superstar phenomenon, the most talented person in which of the following occupations is most likely to earn extremely high wages?

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

Sometimes workers earn higher wages through chance.

Workers in a labor union typically are paid less than workers not in a labor union.

Mary and Mike are twins who attended grammar school through college together. Both twins got jobs in the same department of an accounting firm. They both work equally hard and have received similar performance reviews. Mary earns $62,000 a year, and Mike earns $80,000 a year. Select the best explanation for this wage difference.