Question 1

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Accepted Answer

A)  the demand for female labor to be lower than the demand for male labor.
B)  the demand for female labor to be higher than the demand for male labor.
C)  the supply of female labor to be lower than the demand for male labor.
D)  the supply of female labor to be higher than the supply of male labor.E) C) and D)
F) A) and B)

Question 2

Which of the following is an example of customer discrimination?

Accepted Answer

A)  European soccer players earn more than U.S. soccer players since soccer is more popular in Europe.
B)  Male basketball players in the NBA earn higher salaries than female basketball players in the WNBA since viewers prefer watching NBA games.
C)  Golfers on the men's PGA tour earn more than golfers on the women's LPGA tour since people prefer watching the men play golf.
D)  All of the above are examples of customer discrimination.E) A) and D)
F) C) and D)

Question 3

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Accepted Answer

A)  natural ability.
B)  geographic location of employment.
C)  chance.
D)  work effort.E) A) and D)
F) All of the above

Question 4

List three reasons why wages could be set above the equilibrium wage.

Accepted Answer

minimum-wage laws
ma...

Question 5

Scenario 19-7
Mark works full time at a large accounting firm. Mark has been at the firm for four years but has not been given a promotion, even though newer employees have already been promoted. Mark believes he is a victim of labor-market discrimination, and threatens to hire a lawyer to sue the company.
​
-Refer to Scenario 19-7. Which of the following would strengthen Mark's case against his employer?

Accepted Answer

A)  Mark is always late to important company meetings.
B)  Mark has more experience than any newly-hired accountant.
C)  Mark once got in a fight with another co-worker.
D)  The newly-hired accountants who were promoted before Mark work 20 hours a week more than Mark does.E) A) and D)
F) A) and C)

Question 6

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Accepted Answer

A)  most people's preference is to work the day shift.
B)  some people prefer to work a night shift for nonmonetary reasons.
C)  night shift jobs are generally more technically difficult.
D)  more women than men work the night shift.E) C) and D)
F) None of the above

Question 7

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, over time, the demand for unskilled labor has risen relative to the demand for skilled labor.
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) A) and C)
F) A) and B)

Question 8

Which of the following is not an example of capital used in production?

Accepted Answer

A)  a teacher's chalkboard
B)  a manufacturer's factory
C)  a landscaper's time
D)  an accountant's educationE) All of the above
F) C) and D)

Question 9

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Accepted Answer

A)  Although both have BA's in Journalism, Al's K-12 and college education were of a lower quality than Steve's.
B)  Al has greater experience.
C)  Al works the night shift and Steve works the day shift.
D)  Al writes editorials which are very popular with customers, while Steve covers the police report which fewer subscribers read.E) All of the above
F) None of the above

Question 10

Figure 19-5 
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what is the quantity demanded of labor if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

A)  100
B)  200
C)  300
D)  400E) A) and D)
F) A) and B)

Question 11

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Accepted Answer

Differences in human...

Question 12

Which of the following statements can be called a productivity-revealing theory?

Accepted Answer

A)  human-capital theory and signaling theory
B)  human-capital theory but not signaling theory
C)  signaling theory but not human-capital theory
D)  neither human-capital theory nor signaling theoryE) All of the above
F) A) and D)

Question 13

The wage gap between skilled and unskilled worker has

Accepted Answer

A)  risen; economists argue that this may be due in part to technological progress.
B)  risen; economists argue that none of the rise is due to technological progress.
C)  fallen; economists argue that this may be due in part to technological progress.
D)  fallen; economists argue that none of the fall is due to technological progress.E) A) and D)
F) A) and B)

Question 14

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 requires some night shift work, wages will be lower than otherwise.
B)  the job that is more fun will have a higher wage.
C)  if the motel job doesn't require any special skills, the wage offer will be lower than otherwise.
D)  All of the above are correct.E) C) and D)
F) B) and D)

Question 15

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Accepted Answer

A)  There is a cost advantage for firms that do not discriminate.
B)  Workers who are victims of discrimination will eventually drop out of the labor market.
C)  Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
D)  Discrimination cannot exist in markets.E) All of the above
F) A) and D)

Question 16

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 must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the

Accepted Answer

A)  credit analysts more as a compensating differential.
B)  sales people more as a compensating differential.
C)  same salary for both positions because they require the same skill level.
D)  same salary for both positions because it would be illegal to do otherwise.E) A) and D)
F) All of the above

Question 17

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) B) and C)
F) None of the above

Question 18

Which of the following is an example of a compensating differential?

Accepted Answer

A)  Two workers with different levels of on-the-job training earn different salaries.
B)  Two workers whose jobs entail different working conditions earn different salaries.
C)  Two workers whose jobs require different levels of technical expertise earn different salaries.
D)  Two workers with different levels of natural ability earn different salaries.E) B) and C)
F) A) and D)

Question 19

Jen is a waitress, and she gets paid an additional $2.00 per hour for agreeing to work on Valentine's Day. Jamie is also a waitress, but she did not work on Valentine's Day and hence did not get the extra $2.00 per hour. This difference in pay is an example of differences in human capital.

Accepted Answer

A) True 
 B)False

Question 20

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Correct Answer
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Correct Answer
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List three reasons why wages could be set above the equilibrium wage.

Correct Answer
verified
minimum-wage laws
ma...
View Answer

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Correct Answer
verified

Jen is a waitress, and she gets paid an additional $2.00 per hour for agreeing to work on Valentine's Day. Jamie is also a waitress, but she did not work on Valentine's Day and hence did not get the extra $2.00 per hour. This difference in pay is an example of differences in human capital.

Correct Answer
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The wage gap between skilled and unskilled worker has

Correct Answer
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Which of the following is an example of customer discrimination?

Correct Answer
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The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Correct Answer
verified

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Correct Answer
verified

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

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

Which of the following is not an example of capital used in production?

Correct Answer
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Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what is the quantity demanded of labor if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Which of the following statements can be called a productivity-revealing theory?

Correct Answer
verified

Correct Answer
verified

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Correct Answer
verified
Differences in human...
View Answer

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct Answer
verified

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Correct Answer
verified

Correct Answer
verified

Which of the following is an example of a compensating differential?

Correct Answer
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Exam 19: Earnings and Discrimination

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

List three reasons why wages could be set above the equilibrium wage.

Correct Answerverifiedminimum-wage lawsma...View AnswerShow Answer

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Correct AnswerverifiedShow Answer

Jen is a waitress, and she gets paid an additional $2.00 per hour for agreeing to work on Valentine's Day. Jamie is also a waitress, but she did not work on Valentine's Day and hence did not get the extra $2.00 per hour. This difference in pay is an example of differences in human capital.

Correct AnswerverifiedShow Answer

The wage gap between skilled and unskilled worker has

Correct AnswerverifiedShow Answer

Which of the following is an example of customer discrimination?

Correct AnswerverifiedShow Answer

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Correct AnswerverifiedShow Answer

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Correct AnswerverifiedShow Answer

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

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

Which of the following is not an example of capital used in production?

Correct AnswerverifiedShow Answer

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what is the quantity demanded of labor if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Which of the following statements can be called a productivity-revealing theory?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Correct AnswerverifiedDifferences in human...View AnswerShow Answer

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct AnswerverifiedShow Answer

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of a compensating differential?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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minimum-wage laws
ma...
View Answer

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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Differences in human...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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