Question 1

The time spent by students in college

Accepted Answer

A)   leads to lower lifetime earnings because opportunity costs are high.
B)   is an investment in human capital.
C)   decreases human capital by lowering work experience.
D)   increases as the wages paid to low-skilled workers rise.E) A) and D)
F) None of the above

Question 2

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Accepted Answer

A) True 
 B)False

Question 3

For a "superstar" to emerge,it must be the case that

Accepted Answer

A)   it is possible to supply the good or service that the superstar produces at low cost to every customer.
B)   some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar.
C)   the superstar has a natural monopoly on his or her good or service.
D)   the superstar is willing to settle for a level of pay that is less than the value of his marginal product.E) B) and D)
F) None of the above

Question 4

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

Accepted Answer

A)   a compensating differential for the cost of becoming educated.
B)   a signal that the market is indifferent to a worker's level of human capital.
C)   considered unfair by economists.
D)   considered unfair by everyone.E) C) and D)
F) A) and B)

Question 5

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Accepted Answer

A) True 
 B)False

Question 6

Expenditures on human capital

Accepted Answer

A)   reflect an expectation of some future return on the investment.
B)   are generally embodied in a specific individual.
C)   reflect an investment of resources today to raise productivity in the future.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 7

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Accepted Answer

A) True 
 B)False

Question 8

Many kindergarten teachers have advanced educational degrees,yet they have lower average earnings that other individuals with similar educational 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 B)
F) A) and C)

Question 9

Which of the following is true of minimum-wage laws?

Accepted Answer

A)   They affect skilled workers' wages.
B)   They create above-equilibrium wages for some unskilled workers.
C)   They create a shortage of unskilled labor.
D)   They negatively affect the employment of skilled workers.E) B) and C)
F) A) and D)

Question 10

Which of the following variables related to a worker's wage are the most difficult to measure?

Accepted Answer

A)   ability,effort,and chance
B)   job characteristics,gender,and race
C)   gender,race,and geographic location
D)   years of schooling,age,and years of experienceE) A) and B)
F) All of the above

Question 11

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)   a union.E) A) and B)
F) C) and D)

Question 12

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Accepted Answer

A)   to reduce employee turnover.
B)   to prevent unions from recruiting members.
C)   to reduce the need for minimum wage laws.
D)   to increase the demand for better-skilled workers.E) A) and B)
F) A) and C)

Question 13

Other things equal,a particular job will likely pay a higher wage if it involves

Accepted Answer

A)   danger to the worker.
B)   personal enjoyment for the worker.
C)   intellectual stimulation for the worker.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 14

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A)   Restaurant customers preferred to be waited on by white waitresses than by black waitresses.
B)   Black basketball players earned more than white basketball players.
C)   Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal.
D)   Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.E) A) and D)
F) All of the above

Question 15

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Accepted Answer

A)   discrimination against people from the west exists.
B)   people from the east receive compensating differentials.
C)   people from the west have lower levels of human capital.
D)   All of the above could be correct.E) B) and C)
F) A) and B)

Exam 19: Earnings and Discrimination

Which of the following is true of minimum-wage laws?

Correct Answer
verified

Other things equal,a particular job will likely pay a higher wage if it involves

Correct Answer
verified

For a "superstar" to emerge,it must be the case that

Correct Answer
verified

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct Answer
verified

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

Correct Answer
verified

The time spent by students in college

Correct Answer
verified

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Correct Answer
verified

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Correct Answer
verified

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Correct Answer
verified

Expenditures on human capital

Correct Answer
verified

Which of the following variables related to a worker's wage are the most difficult to measure?

Correct Answer
verified

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Which of the following is true of minimum-wage laws?

Correct AnswerverifiedShow Answer

Other things equal,a particular job will likely pay a higher wage if it involves

Correct AnswerverifiedShow Answer

For a "superstar" to emerge,it must be the case that

Correct AnswerverifiedShow Answer

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The time spent by students in college

Correct AnswerverifiedShow Answer

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Correct AnswerverifiedShow Answer

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Correct AnswerverifiedShow Answer

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Correct AnswerverifiedShow Answer

Expenditures on human capital

Correct AnswerverifiedShow Answer

Which of the following variables related to a worker's wage are the most difficult to measure?

Correct AnswerverifiedShow Answer

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct AnswerverifiedShow Answer

Correct Answer
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