Question 1

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Accepted Answer

A)  one hypothesis emphasizes education, and the other emphasizes compensating differentials.
B)  one hypothesis emphasizes education, and the other international trade.
C)  one hypothesis emphasizes international trade, and the other emphasizes technology.
D)  one hypothesis emphasizes technology, and the other emphasizes compensating differentials.E) A) and B)
F) A) and C)

Question 2

Which of the following statements is correct?

Accepted Answer

A)  The human-capital theory of education could be called a productivity-enhancing theory.
B)  The human-capital theory of education could be called a productivity-revealing theory.
C)  The signaling theory of education could be called a productivity-enhancing theory.
D)  The signaling theory of education has been disproven by a number of prominent economists.E) A) and B)
F) A) and C)

Question 3

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Accepted Answer

A)  the inability to calculate wage differentials.
B)  the inability to see changes in the wage differentials over a period of time.
C)  the difficulty in measuring productivity differences between workers.
D)  the difficulty in measuring female labor-force participation.E) B) and C)
F) A) and D)

Question 4

The accumulation of investments in people, such as education and on-the-job training, is known as

Accepted Answer

A)  physical capital.
B)  human capital.
C)  efficiency wage.
D)  compensating differentials.E) A) and D)
F) A) and C)

Question 5

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Accepted Answer

A)  the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years.
B)  developing countries do not pay workers the value of their marginal product.
C)  developed economies export high-skill jobs to developing countries.
D)  All of the above are correct.E) A) and C)
F) None of the above

Question 6

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Accepted Answer

A)  most countries but not in the United States.
B)  the United States but not in most other countries.
C)  the United States and in most other countries.
D)  None of the above is correct; the evidence fails to indicate that human capital is a significant factor in determining earnings anywhere in the world.E) A) and B)
F) A) and C)

Question 7

Suppose that Philip is the best contractor in town, and he makes $400,000 a year. Suppose that Julia Roberts is the best and highest paid actress in Hollywood, and she makes $13 million per movie. Both are the best in their respective fields of work. One reason for the significant difference in incomes has to do with the nature of the service each offers. Philip's contracting services

Accepted Answer

A)  can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year.
B)  can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
C)  can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
D)  can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.E) None of the above
F) C) and D)

Question 8

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. In a competitive market for grocery store employees, why might Jason's wage differential persist?

Accepted Answer

A)  Jason works harder than the other employees.
B)  Jason may choose to do tasks other workers find undesirable.
C)  Jason's amiable personality allows him to work well with his co-workers.
D)  None of the above is correct.E) All of the above
F) None of the above

Question 9

Major league baseball players get paid more than minor league baseball players because of

Accepted Answer

A)  compensating differentials.
B)  higher levels of educational attainment.
C)  greater abilities.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 10

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the

Accepted Answer

A)  human capital theory.
B)  discrimination theory.
C)  compensating differential theory.
D)  signaling theory.E) All of the above
F) A) and D)

Question 11

After an employer pays the cost of educating a worker,

Accepted Answer

A)  the worker has a higher level of human capital.
B)  the worker should become more productive.
C)  the worker might look for another job unless his employer pays him more.
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 12

Discrimination is an emotionally charged issue that is impossible to study objectively.

Accepted Answer

A) True 
 B)False

Question 13

Evidence of discrimination in labor markets

Accepted Answer

A)  applies only to race and gender.
B)  is conclusively identified by large differences in average wages rates between men and women.
C)  is difficult to verify by reference to differences in average wage rates.
D)  is more easily identified on the basis of race than gender.E) A) and D)
F) All of the above

Question 14

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience, education, lif...

Question 15

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

Accepted Answer

A)  the long breaks and limited work days
B)  the stress they face
C)  the comparatively low level of education required
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 16

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 17

Figure 19-7 
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. Suppose the current labor demand is D1 and the current labor supply is S1. If a firm in this market decided to pay its workers $18 per hour to increase the productivity of its workers, this firm would be paying a(n)

Accepted Answer

The answer of Figure 19-7 
-Refer to Figure 19-7. The...

Question 18

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Accepted Answer

A)  10% more than men with a high school education.
B)  25% more than men with a high school education.
C)  75% more than men with a high school education.
D)  90% more than men with a high school education.E) B) and D)
F) A) and D)

Question 19

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A)  is unlikely to find evidence of wage differentials.
B)  can provide strong evidence of labor market discrimination.
C)  is likely to misinterpret apparent evidence of labor market discrimination.
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers.E) C) and D)
F) B) and D)

Question 20

Which of the following statements is true of wages, educational attainment, and gender?

Accepted Answer

A)  Male workers are compensated for attending college, while female workers generally are not.
B)  Female workers are compensated for attending college, while male workers generally are not.
C)  Both genders receive a higher wage for attending college.
D)  Neither gender receives a higher wage for attending college.E) C) and D)
F) A) and B)

Exam 19: Earnings and Discrimination

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct Answer
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Correct Answer
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Evidence of discrimination in labor markets

Correct Answer
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Correct Answer
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After an employer pays the cost of educating a worker,

Correct Answer
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Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Correct Answer
verified

Major league baseball players get paid more than minor league baseball players because of

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct Answer
verified

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

Correct Answer
verified

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct Answer
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Which of the following statements is correct?

Correct Answer
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List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Correct Answer
verified
Job experience, education, lif...
View Answer

Empirical work that does not account for differences in the productivity of workers

Correct Answer
verified

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct Answer
verified

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Correct Answer
verified

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct Answer
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The accumulation of investments in people, such as education and on-the-job training, is known as

Correct Answer
verified

Correct Answer
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Which of the following statements is true of wages, educational attainment, and gender?

Correct Answer
verified

Correct Answer
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Exam 19: Earnings and Discrimination

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Evidence of discrimination in labor markets

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After an employer pays the cost of educating a worker,

Correct AnswerverifiedShow Answer

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Correct AnswerverifiedShow Answer

Major league baseball players get paid more than minor league baseball players because of

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct AnswerverifiedShow Answer

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

Correct AnswerverifiedShow Answer

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Correct AnswerverifiedJob experience, education, lif...View AnswerShow Answer

Empirical work that does not account for differences in the productivity of workers

Correct AnswerverifiedShow Answer

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct AnswerverifiedShow Answer

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Correct AnswerverifiedShow Answer

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct AnswerverifiedShow Answer

The accumulation of investments in people, such as education and on-the-job training, is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true of wages, educational attainment, and gender?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Job experience, education, lif...
View Answer

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