Question 1

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

Question 2

A consensus view among economists regarding the possibility of labor-market discrimination is that

Accepted Answer

A)  most wage differences among groups are attributable to discrimination.
B)  many employers use compensating differentials to hide discriminatory practices.
C)  wage differences among groups are not sufficient by themselves to determine how much discrimination there is.
D)  all wage differences among groups are attributable to differences in human capital and compensating differentials.E) B) and D)
F) A) and C)

Question 3

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Accepted Answer

A) True 
 B)False

Question 4

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Accepted Answer

The answer of Chris just completed his college degree from...

Question 5

If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.

Accepted Answer

A) True 
 B)False

Question 6

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Accepted Answer

A) True 
 B)False

Question 7

Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?

Accepted Answer

A)  Public school teacher jobs are difficult.
B)  Public school teachers are required to be college graduates.
C)  Public school teachers belong to a union.
D)  Teaching in a public school has a high element of personal satisfaction.E) C) and D)
F) B) and C)

Question 8

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)  An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
B)  An employer is more likely to grant an interview to a person graduating from the local community college than from Yale.
C)  An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
D)  An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."E) C) and D)
F) B) and D)

Question 9

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)  and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then

Accepted Answer

A)  all barbershops now earn a normal economic profit.
B)  competition will ensure the difference in wages will persist.
C)  barbershops that hire barbers with hair will be more profitable than those that don't.
D)  barbershops that hire bald barbers will be more profitable than those that don't.E) A) and B)
F) A) and C)

Question 10

The organized withdrawal of labor from a firm by a union is called

Accepted Answer

A)  a strike.
B)  a bargain.
C)  a monopoly.
D)  a tournament.E) A) and D)
F) A) and B)

Question 11

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Accepted Answer

5 to 10 pe...

Question 12

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A)  human capital and compensating differentials
B)  human capital but not compensating differentials
C)  compensating differentials but not human capital
D)  neither human capital nor compensating differentialsE) B) and D)
F) A) and D)

Question 13

Why do major-league baseball players get paid more than minor-league players?

Accepted Answer

A)  Major-league players are better athletes.
B)  The higher wage reflects a compensating differential.
C)  Playing in the major leagues in more pleasant then playing in the minor leagues.
D)  The higher wage is often due to educational discrepancies.E) C) and D)
F) None of the above

Question 14

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Accepted Answer

A)  more international travel to dangerous locations.
B)  two night shifts per month.
C)  careful handling of toxic chemicals.
D)  an advanced degree.E) None of the above
F) A) and C)

Question 15

Figure 19-2 
-Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

Accepted Answer

A)  400
B)  500
C)  600
D)  700E) B) and C)
F) A) and D)

Question 16

In the country of Freedonia, men and women have the same level of education and choose different forms of work in the same proportions. The only real difference is that men typically stay home to raise young children, returning to the work force after their children enter elementary school. If no discrimination exists, then we would expect that, on average,

Accepted Answer

A)  women would earn less than men.
B)  women would earn more than men.
C)  men and women would earn the same wage.
D)  wage differences between men and women would be due to differences in beauty.E) A) and B)
F) A) and C)

Question 17

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is not correct?

Accepted Answer

A)  If the signaling theory of education is correct, additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education.
B)  The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive.
C)  Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits.
D)  The theory of compensating wage differentials reflects the different skills, abilities, and productivity of workers.E) A) and B)
F) C) and D)

Question 19

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Accepted Answer

A)  black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston.
B)  black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago.
C)  job applicants with white names received 50 percent more phone calls from interested employers.
D)  job applicants with white names received 7 percent more phone calls from interested employers.E) None of the above
F) A) and B)

Question 20

If the signaling theory of education is correct,

Accepted Answer

A)  education increases productivity and educated workers are paid more.
B)  education increases productivity but educated workers are not paid more.
C)  education does not increase productivity but educated workers earn more.
D)  education does not increase productivity and educated workers do not earn moreE) A) and B)
F) A) and C)

Exam 19: Earnings and Discrimination

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answer
verified
5 to 10 pe...
View Answer

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Correct Answer
verified

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Correct Answer
verified

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct Answer
verified

Expenditures on human capital

Correct Answer
verified

Which of the following represents an example of labor-market discrimination?

Correct Answer
verified

The organized withdrawal of labor from a firm by a union is called

Correct Answer
verified

Correct Answer
verified

Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?

Correct Answer
verified

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Correct Answer
verified

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Correct Answer
verified

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

Correct Answer
verified

Correct Answer
verified

Which of the following can be used to help explain wage differences among different groups of workers?

Correct Answer
verified

If the signaling theory of education is correct,

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.

Correct Answer
verified

Why do major-league baseball players get paid more than minor-league players?

Correct Answer
verified

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Correct Answer
verified

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Correct Answer
verified

Exam 19: Earnings and Discrimination

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answerverified5 to 10 pe...View AnswerShow Answer

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Correct AnswerverifiedShow Answer

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Correct AnswerverifiedShow Answer

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct AnswerverifiedShow Answer

Expenditures on human capital

Correct AnswerverifiedShow Answer

Which of the following represents an example of labor-market discrimination?

Correct AnswerverifiedShow Answer

The organized withdrawal of labor from a firm by a union is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Public school teachers are known to have low wages. Which of the following would push the teachers' wages lower?

Correct AnswerverifiedShow Answer

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Correct AnswerverifiedShow Answer

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Correct AnswerverifiedShow Answer

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following can be used to help explain wage differences among different groups of workers?

Correct AnswerverifiedShow Answer

If the signaling theory of education is correct,

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.

Correct AnswerverifiedShow Answer

Why do major-league baseball players get paid more than minor-league players?

Correct AnswerverifiedShow Answer

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Correct AnswerverifiedShow Answer

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Correct AnswerverifiedShow Answer

Correct Answer
verified
5 to 10 pe...
View 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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified