Question 1

When two workers work for the same company but get paid different wages,there is likely to be a

Accepted Answer

A)  compensating differential.
B)  difference in years of experience.
C)  difference in productivity.
D)  Any of the above explanations are possible.E) A) and D)
F) A) and B)

Question 2

Philip is the best contractor in town,and he earns $400,000 a year.Billy is an average contractor in town,and he earns $80,000 a year.Philip's contracting services

Accepted Answer

A)  are valued more by the market relative to Billy's and that explains why his income is higher than Billy's.
B)  are valued less by the market relative to Billy's and that explains why his income is higher than Billy's.
C)  are valued less by the market relative to Billy's and that explains why his income is lower than Billy's.
D)  are more expensive because he receives a compensating differential.E) All of the above
F) C) and D)

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

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Accepted Answer

A)  a surplus of labor
B)  unemployment
C)  more unionized jobs
D)  All of the above are consequences of above-equilibrium wages.E) None of the above
F) A) and D)

Question 5

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)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical.
B)  the equilibrium wage in the "bald" market will eventually fall.
C)  the equilibrium wage in the "hairy" market will eventually rise.
D)  wages in the market for barbers can never be in equilibrium.E) B) and D)
F) All of the above

Question 6

Patrick is considering two different jobs in the same city - one as a bicycle courier and the other as a mail room clerk.Both require equivalent training.He finds neither job very appealing,but,if they pay the same wage rate,Patrick would prefer to work as a mail room clerk.In order for Patrick to find the two jobs equally attractive,the

Accepted Answer

A)  mail room job must pay a compensating wage differential.
B)  mail room job must pay an efficiency wage.
C)  courier job must pay a compensating wage differential.
D)  courier job must pay an efficiency wage.E) None of the above
F) All of the above

Question 7

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 signaling theory of education could be called a productivity-revealing theory.
C)  The signaling theory of education has been disproved by Princeton University economist Alan Krueger.
D)  Both a and b are correct.E) C) and D)
F) B) and D)

Question 8

Differences in human capital are likely to

Accepted Answer

A)  be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
B)  be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination.
C)  explain some of the differences in average wage rates across age classifications.
D)  explain all of the differences in average wage rates across gender classifications.E) A) and C)
F) A) and D)

Question 9

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

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 B)
F) A) and C)

Question 11

As more companies rely on computer databases and less on filing cabinets,the (i) 	demand for computer programmers will rise.
(ii) 	wage paid to filing clerks will rise.
(iii) 	wage paid to computer programmers will rise.

Accepted Answer

A)  (i)  and (ii) 
B)  (ii)  and (iii) 
C)  (i)  and (iii) 
D)  (i) , (ii) , and (iii) E) All of the above
F) C) and D)

Question 12

A competitive market may be consistent with a discriminatory wage differential if

Accepted Answer

A)  firms' customers have discriminatory preferences.
B)  the wage differential is explained by a compensating differential.
C)  the wage differential is explained by differences in human capital.
D)  All of the above are correct.E) B) and D)
F) All of the above

Question 13

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Accepted Answer

A)  a compensating differential.
B)  an efficiency wage.
C)  discrimination.
D)  compensating variation.E) B) and C)
F) A) and D)

Question 14

Which of the following theories explains why increased education translates into higher wages? (i) 	human-capital theory
(ii) 	the theory of compensating differentials
(iii) 	signaling theory

Accepted Answer

A)  (i)  only
B)  (i)  and (ii) 
C)  (i)  and (iii) 
D)  (i) , (ii) , and (iii) E) A) and C)
F) C) and D)

Question 15

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Accepted Answer

A)  plumbers who work with sewer lines require years of specialized training.
B)  plumbing jobs that involve sewer lines are likely to have an element of personal satisfaction.
C)  plumbers who work with sewer lines are more likely to work a standard shift.
D)  plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.E) A) and B)
F) A) and D)

Question 16

Which of the following statements is correct? (i) 	Since the 1940s,the number of American workers employed in the manufacturing sector has declined from 30 percent to 10 percent.
(ii) 	Since 1910,the number of Americans working as farmers has declined from 33 percent to 3 percent.
(iii) 	Since 1995,global industrial output has fallen by more than 30 percent.
(iv) 	Productivity increases are one reason for the declining number of manufacturing jobs.

Accepted Answer

A)  (i)  and (ii)  only
B)  (i) , (ii) , and (iii)  only
C)  (i) , (ii) , and (iv)  only
D)  (i) , (ii) , (iii) , and (iv) E) All of the above
F) B) and C)

Question 17

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 $30.Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $38 per hour.Because of the union,

Accepted Answer

A)  10 people who were once employed are now unemployed.
B)  20 people who were once employed are now unemployed.
C)  40 people who were once employed are now unemployed.
D)  20 people who were once unemployed are now employed.E) A) and B)
F) C) and D)

Question 18

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Accepted Answer

The theory of signaling suggests that th...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,it made coal miners more productive.We would expect that the wages of coal miners would

Accepted Answer

A)  rise.
B)  fall.
C)  stay exactly the same.
D)  rise, fall, or stay the same.E) B) and D)
F) A) and D)

Exam 19: Earnings and Discrimination

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

Correct Answer
verified

Which of the following theories explains why increased education translates into higher wages? (i) human-capital theory (ii) the theory of compensating differentials (iii) signaling theory

Correct Answer
verified

Differences in human capital are likely to

Correct Answer
verified

Correct Answer
verified

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Correct Answer
verified

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

Correct Answer
verified

When two workers work for the same company but get paid different wages,there is likely to be a

Correct Answer
verified

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Correct Answer
verified

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,it made coal miners more productive.We would expect that the wages of coal miners would

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Correct Answer
verified

Philip is the best contractor in town,and he earns $400,000 a year.Billy is an average contractor in town,and he earns $80,000 a year.Philip's contracting services

Correct Answer
verified

As more companies rely on computer databases and less on filing cabinets,the (i) demand for computer programmers will rise. (ii) wage paid to filing clerks will rise. (iii) wage paid to computer programmers will rise.

Correct Answer
verified

Which of the following statements is correct?

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

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Correct Answer
verified
The theory of signaling suggests that th...
View 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 Answer
verified

A competitive market may be consistent with a discriminatory wage differential if

Correct Answer
verified

Correct Answer
verified

Exam 19: Earnings and Discrimination

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

Correct AnswerverifiedShow Answer

Which of the following theories explains why increased education translates into higher wages? (i) human-capital theory (ii) the theory of compensating differentials (iii) signaling theory

Correct AnswerverifiedShow Answer

Differences in human capital are likely to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When two workers work for the same company but get paid different wages,there is likely to be a

Correct AnswerverifiedShow Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Correct AnswerverifiedShow Answer

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,it made coal miners more productive.We would expect that the wages of coal miners would

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

Correct AnswerverifiedShow Answer

Philip is the best contractor in town,and he earns $400,000 a year.Billy is an average contractor in town,and he earns $80,000 a year.Philip's contracting services

Correct AnswerverifiedShow Answer

As more companies rely on computer databases and less on filing cabinets,the (i) demand for computer programmers will rise. (ii) wage paid to filing clerks will rise. (iii) wage paid to computer programmers will rise.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

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

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Correct AnswerverifiedThe theory of signaling suggests that th...View AnswerShow 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

A competitive market may be consistent with a discriminatory wage differential if

Correct AnswerverifiedShow Answer

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

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified