Question 1

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) None of the above
F) A) and D)

Question 2

Figure 19-3
The manufacturing labor market. 
-Refer to Figure 19-3. Suppose the manufacturing labor market, which is non-unionized, is in equilibrium at a wage equal to $25. Suppose now that the AFL-CIO (a labor organization)  organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. Because of the union,

Accepted Answer

A)   80 people who were once employed are now unemployed.
B)   40 people who were once employed are now unemployed.
C)   80 people who were once unemployed are now employed.
D)   40 people who were once unemployed are now employed.E) A) and D)
F) A) and B)

Question 3

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Accepted Answer

A)   non-pecuniary differentials
B)   compensating differentials
C)   fundamental differences
D)   idiosyncratic differencesE) B) and C)
F) A) and B)

Question 4

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

Question 5

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Accepted Answer

A) True 
 B)False

Question 6

If an employer pays a man a higher wage than a woman, the employer

Accepted Answer

A)   is discriminating against the woman but is still maximizing profit.
B)   is not discriminating against the woman.
C)   may or may not be discriminating against the woman.
D)   is discriminating against the woman and is not maximizing profit.E) B) and D)
F) B) and C)

Question 7

Education raises wages because the demanders of labor

Accepted Answer

A)   are willing to pay more for highly educated workers who have higher marginal products and the suppliers of labor are willing to pay the cost of becoming educated only if they are rewarded.
B)   are willing to pay the cost of becoming educated only if they are rewarded and the suppliers of labor are willing to pay more for highly educated workers who have higher marginal products.
C)   require fewer workers if they are highly educated.
D)   None of the above is correct.E) A) and B)
F) C) and D)

Question 8

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Accepted Answer

A) True 
 B)False

Question 9

Above-equilibrium wages caused by efficiency wages will most likely result in

Accepted Answer

A)   a shortage of labor.
B)   increased unemployment.
C)   compensating wage differentials.
D)   an decrease in the quantity of labor supplied.E) None of the above
F) B) and C)

Question 10

Other things equal, when the supply of workers is low, one would predict that market wages would be

Accepted Answer

A)   relatively high.
B)   relatively low.
C)   determined solely by factors that affect demand.
D)   determined outside the domain of economic theory.E) A) and D)
F) All of the above

Question 11

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

The answer of Figure 19-6 
-Refer to Figure 19-6. Given...

Question 12

Daryn and Nick work for two different companies, but each performs the same job working on a loading dock.
Daryn, however, earns a higher salary than his friend Nick The difference in salary could illustrate union wages if
Daryn's annual salary is covered by a collective bargaining agreement and Nick's is not.

Accepted Answer

A) True 
 B)False

Question 13

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Accepted Answer

A)   women choose competitive environments more than men.
B)   women and men choose competitive environments equally.
C)   women choose competitive environments less than men.
D)   women are just as likely as men to have high-paying corporate jobs.E) A) and C)
F) B) and C)

Question 14

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 15

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Accepted Answer

The answer of Among female workers over age 25, about...

Question 16

Figure 19-2 
-Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

Accepted Answer

A)   500
B)   600
C)   700
D)   800E) None of the above
F) A) and C)

Question 17

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

Accepted Answer

A)   Yes, because the experience gained during the internship would increase the student's human capital.
B)   No, because the opportunity cost is too high.
C)   No, because the student is signaling to future employers that he or she is willing to accept low wages.
D)   Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.E) B) and C)
F) A) and D)

Question 18

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

Accepted Answer

A)   labor-market discrimination
B)   discrimination that occurs prior to people entering the labor market
C)   discrimination by customers
D)   discrimination by employersE) None of the above
F) A) and D)

Question 19

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

Question 20

First grade teachers who work in Lynn, Massachusetts's (a large, low income city north of Boston)  public schools earn more than first grade teachers who work in private schools in more affluent communities north of Boston. Lynn teachers belong to a teachers' union. Which statement best explains the scenario described above?

Accepted Answer

A)   Lynn school teachers receive a compensating differential because they work in a more difficult environment, and they receive higher than market equilibrium wages because they are members of a teachers' union.
B)   Lynn school teachers receive a compensating differential because they work in a more difficult environment, but they do not receive higher than market equilibrium wages because they are members of a teachers' union.
C)   Lynn school teachers do not receive a compensating differential because they work in a more difficult environment, but they do receive higher than market equilibrium wages because they are members of a teachers' union.
D)   Lynn school teachers do not receive a compensating differential because they work in a more difficult environment, and they do not receive higher than market equilibrium wages because they are members of a teachers' union.E) B) and C)
F) A) and B)

Exam 19: Earnings and Discrimination

Correct Answer
verified

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

Correct Answer
verified

Correct Answer
verified

The ownership of human capital

Correct Answer
verified

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

Correct Answer
verified

Correct Answer
verified

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Correct Answer
verified

Education raises wages because the demanders of labor

Correct Answer
verified

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct Answer
verified

If an employer pays a man a higher wage than a woman, the employer

Correct Answer
verified

Other things equal, when the supply of workers is low, one would predict that market wages would be

Correct Answer
verified

Correct Answer
verified

Above-equilibrium wages caused by efficiency wages will most likely result in

Correct Answer
verified

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

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Correct Answer
verified

Exam 19: Earnings and Discrimination

Correct AnswerverifiedShow Answer

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The ownership of human capital

Correct AnswerverifiedShow Answer

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Correct AnswerverifiedShow Answer

Education raises wages because the demanders of labor

Correct AnswerverifiedShow Answer

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct AnswerverifiedShow Answer

If an employer pays a man a higher wage than a woman, the employer

Correct AnswerverifiedShow Answer

Other things equal, when the supply of workers is low, one would predict that market wages would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Above-equilibrium wages caused by efficiency wages will most likely result in

Correct AnswerverifiedShow Answer

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

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified