Question 1

Which theory states that education makes workers more productive?

Accepted Answer

human-capi...

Question 2

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

Question 3

A difference in wages between a highly-educated worker and a less-educated worker

Accepted Answer

A)  may be due to a difference in the amounts of human capital between the workers.
B)  may be a signal that the market is indifferent to a worker's level of human capital.
C)  is considered unfair by economists.
D)  is considered unfair by everyone.E) All of the above
F) A) and B)

Question 4

Which of the following is not an interpretation of the "beauty premium"?

Accepted Answer

A)  Beautiful workers are not willing to work for lower wages.
B)  Good looks are a type of innate ability causing the worker to be more valuable to the firm.
C)  The beauty premium is a type of discrimination.
D)  Beauty is an indirect measure of other types of ability.E) A) and C)
F) B) and D)

Question 5

In recent years, the amount of international trade in which the United States engages has

Accepted Answer

A)  increased, raising domestic demand for unskilled labor.
B)  increased, reducing domestic demand for unskilled labor.
C)  decreased, raising domestic demand for unskilled labor.
D)  decreased, reducing domestic demand for unskilled labor.E) C) and D)
F) A) and B)

Question 6

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. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?

Accepted Answer

A)  Widget workers benefit from having a higher wage.
B)  Widget firms benefit from receiving a higher profit.
C)  Widget firms will not hire any workers as a result.
D)  There is no impact on the labor market from the higher negotiated wage.E) A) and C)
F) C) and D)

Question 7

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Accepted Answer

The answer of Unions are often able to sustain wages...

Question 8

The ownership of human capital

Accepted Answer

A)  is typically embodied in related physical capital.
B)  may be subject to government restrictions on transferability.
C)  is not easily transferable.
D)  All of the above are correct.E) A) and D)
F) All of the above

Question 9

Tiffany has just graduated from Stanford University and has applied for a job as an engineer at a manufacturing plant. The manufacturer decides to offer Tiffany a job because it perceives she's gained valuable skills while at Stanford. To which of the following views of education does the manufacturer subscribe?

Accepted Answer

A)  signaling
B)  human-capital view
C)  compensating-differentials
D)  superstarE) A) and C)
F) A) and D)

Question 10

The fact that doctors are paid more than economics professors is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 11

Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay

Accepted Answer

A)  higher wages, because jobs that involve pleasant work typically require more education than do jobs that involve unpleasant work.
B)  higher wages, because jobs that involve pleasant work typically require more well-developed personality skills than do jobs that involve unpleasant work.
C)  lower wages, because workers typically are not attracted to jobs that involve unpleasant work unless there is a monetary inducement.
D)  lower wages, because workers who take jobs that involve unpleasant work typically stay in those jobs for relatively long periods of time and accumulate significant experience.E) A) and B)
F) A) and C)

Question 12

Gerald earns a higher salary than his brother Peter because Gerald went to law school and is a lawyer, whereas Peter dropped out of college to work as a mechanic. The difference in salary illustrates a compensating differential.

Accepted Answer

A) True 
 B)False

Question 13

A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect

Accepted Answer

A)  to be unable to predict the wage difference between Illinois and New York.
B)  to make a lower wage in New York.
C)  to make a lower wage in Illinois.
D)  wages in Illinois and New York to be identical.E) B) and C)
F) A) and D)

Question 14

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following scenarios would serve to decrease the demand for unskilled labor in the U.S.?

Accepted Answer

A)  increased productivity gains among unskilled laborers
B)  increased demand for goods produced by unskilled laborers
C)  increased international trade with countries where unskilled labor is more plentiful
D)  increased supply of migrant workersE) A) and C)
F) All of the above

Question 16

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Accepted Answer

A)  differences in chance.
B)  differences in natural ability.
C)  the fact that the players' union is strong.
D)  a compensating differential.E) None of the above
F) All of the above

Question 17

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

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 20

The "beauty premium" can be explained by the fact that

Accepted Answer

A)  marginal productivity in all occupations has a physical dimension.
B)  in some occupations, physical attractiveness of workers may enhance the value of their marginal product.
C)  beauty acts as an implicit signal of innate intelligence.
D)  beautiful people are likely to reflect "good breeding."E) B) and C)
F) A) and D)

Exam 19: Earnings and Discrimination

Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay

Correct Answer
verified

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct Answer
verified

The fact that doctors are paid more than economics professors is an example of a compensating differential.

Correct Answer
verified

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

Which of the following is not an interpretation of the "beauty premium"?

Correct Answer
verified

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct Answer
verified

The ownership of human capital

Correct Answer
verified

Gerald earns a higher salary than his brother Peter because Gerald went to law school and is a lawyer, whereas Peter dropped out of college to work as a mechanic. The difference in salary illustrates a compensating differential.

Correct Answer
verified

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. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?

Correct Answer
verified

In recent years, the amount of international trade in which the United States engages has

Correct Answer
verified

The "beauty premium" can be explained by the fact that

Correct Answer
verified

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct Answer
verified

Correct Answer
verified

Which of the following scenarios would serve to decrease the demand for unskilled labor in the U.S.?

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

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Correct Answer
verified

Which theory states that education makes workers more productive?

Correct Answer
verified
human-capi...
View Answer

A difference in wages between a highly-educated worker and a less-educated worker

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

A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect

Correct Answer
verified

Exam 19: Earnings and Discrimination

Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay

Correct AnswerverifiedShow Answer

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct AnswerverifiedShow Answer

The fact that doctors are paid more than economics professors is an example of a compensating differential.

Correct AnswerverifiedShow Answer

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

Which of the following is not an interpretation of the "beauty premium"?

Correct AnswerverifiedShow Answer

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct AnswerverifiedShow Answer

The ownership of human capital

Correct AnswerverifiedShow Answer

Gerald earns a higher salary than his brother Peter because Gerald went to law school and is a lawyer, whereas Peter dropped out of college to work as a mechanic. The difference in salary illustrates a compensating differential.

Correct AnswerverifiedShow Answer

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. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?

Correct AnswerverifiedShow Answer

In recent years, the amount of international trade in which the United States engages has

Correct AnswerverifiedShow Answer

The "beauty premium" can be explained by the fact that

Correct AnswerverifiedShow Answer

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following scenarios would serve to decrease the demand for unskilled labor in the U.S.?

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

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Correct AnswerverifiedShow Answer

Which theory states that education makes workers more productive?

Correct Answerverifiedhuman-capi...View AnswerShow Answer

A difference in wages between a highly-educated worker and a less-educated worker

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

A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect

Correct AnswerverifiedShow Answer

Correct Answer
verified

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

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. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?

Correct Answer
verified

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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human-capi...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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