Question 1

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

Accepted Answer

A)  it is costless for employers to discriminate against groups they do not like. 
B)  the wages of employees who are discriminated against will actually rise. 
C)  an employer who discriminates will experience higher costs. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages. 
A)  it is costless for employers to discriminate against groups they do not like. 
B)  the wages of employees who are discriminated against will actually rise. 
C)  an employer who discriminates will experience higher costs. 
D)  discrimination by an employer will reduce production costs since the employer can pay lower wages.

Question 2

No questions exist for this section.

Accepted Answer

The sectio

Question 3

Which of the following would cause the demand for plumbers to decrease?

Accepted Answer

A)  an increase in the productivity of plumbers 
B)  a decline in the construction of housing 
C)  a law that mandated higher wages for plumbers 
D)  an increase in the number of plumbers who belong to a union 
A)  an increase in the productivity of plumbers 
B)  a decline in the construction of housing 
C)  a law that mandated higher wages for plumbers 
D)  an increase in the number of plumbers who belong to a union

Question 4

If Congress suddenly passes legislation that required all U.S. workers to receive the same annual pay, we would expect

Accepted Answer

A)  less human capital investment. 
B)  a shortage of workers to fill the least desirable jobs. 
C)  a surplus of workers to fill the easy, desirable jobs. 
D)  all of the above. 
A)  less human capital investment. 
B)  a shortage of workers to fill the least desirable jobs. 
C)  a surplus of workers to fill the easy, desirable jobs. 
D)  all of the above.

Question 5

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Accepted Answer

A)  Employment discrimination 
B)  A high unionization rate for bookkeepers 
C)  A higher educational requirement for garbage collectors than bookkeepers 
D)  The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors. 
A)  Employment discrimination 
B)  A high unionization rate for bookkeepers 
C)  A higher educational requirement for garbage collectors than bookkeepers 
D)  The nonmonetary attractiveness of garbage collection causes fewer people to want to be garbage collectors.

Question 6

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Accepted Answer

A)  higher than the wages of workers with otherwise similar jobs. 
B)  lower than the wages of workers with otherwise similar jobs. 
C)  below market equilibrium. 
D)  above market equilibrium. 
A)  higher than the wages of workers with otherwise similar jobs. 
B)  lower than the wages of workers with otherwise similar jobs. 
C)  below market equilibrium. 
D)  above market equilibrium.

Question 7

Firms will only adopt more automated methods of production when

Accepted Answer

A)  they reduce the need for workers. 
B)  they lower production costs. 
C)  they lengthen the production process. 
D)  other firms in the industry are doing it. 
A)  they reduce the need for workers. 
B)  they lower production costs. 
C)  they lengthen the production process. 
D)  other firms in the industry are doing it.

Question 8

Which of the following is most likely to reduce the market wage rate in a job category?

Accepted Answer

A)  The job requires substantial out-of-town travel. 
B)  Employees have considerable flexibility in choosing their work hours. 
C)  The job is widely viewed as dangerous. 
D)  The job requires employees to move from city to city quite often. 
A)  The job requires substantial out-of-town travel. 
B)  Employees have considerable flexibility in choosing their work hours. 
C)  The job is widely viewed as dangerous. 
D)  The job requires employees to move from city to city quite often.

Question 9

Which of the following is true?

Accepted Answer

A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. 
C)  If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination. 
A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of merit (productivity). 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of similar white men. 
C)  If employers can hire equally productive minority employees at a lower wage than non-minorities, the profit motive provides a strong incentive to do so. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of employment discrimination.

Question 10

A compensation structure that generates much higher pay rates for the top performers, while those whose productivity is only a little lower receive substantially less compensation, is called

Accepted Answer

A)  tournament pay. 
B)  competing differentials. 
C)  dueling executives. 
D)  winner take all. 
A)  tournament pay. 
B)  competing differentials. 
C)  dueling executives. 
D)  winner take all.

Question 11

Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?

Accepted Answer

A)  The job is widely viewed as prestigious. 
B)  The employer provides child care on the premises. 
C)  The employer does not discriminate. 
D)  The work is widely viewed as being stressful and dangerous. 
A)  The job is widely viewed as prestigious. 
B)  The employer provides child care on the premises. 
C)  The employer does not discriminate. 
D)  The work is widely viewed as being stressful and dangerous.

Question 12

The tournament pay explanation is useful in an attempt to explain why

Accepted Answer

A)  some corporate executives earn amounts higher than their marginal revenue product. 
B)  very few people actually earn the minimum wage. 
C)  political entrepreneurs can generate campaign contributions from businesses outside of their districts. 
D)  people with only a high school education earn less than those with college degrees. 
A)  some corporate executives earn amounts higher than their marginal revenue product. 
B)  very few people actually earn the minimum wage. 
C)  political entrepreneurs can generate campaign contributions from businesses outside of their districts. 
D)  people with only a high school education earn less than those with college degrees.

Question 13

If a firm refuses to hire any minorities due to a personal prejudice, its profits

Accepted Answer

A)  will increase markedly. 
B)  will decrease. 
C)  will not be affected. 
D)  will increase slightly. 
A)  will increase markedly. 
B)  will decrease. 
C)  will not be affected. 
D)  will increase slightly.

Question 14

Automated production methods are only attractive when they

Accepted Answer

A)  reduce labor productivity. 
B)  replace workers. 
C)  decrease per-unit costs of production. 
D)  lower wages. 
A)  reduce labor productivity. 
B)  replace workers. 
C)  decrease per-unit costs of production. 
D)  lower wages.

Question 15

Which of the following would be most likely to cause an increase in the wage rate for a particular job?

Accepted Answer

A)  A decrease in the amount of training needed to perform this job. 
B)  An increase in the danger of this job. 
C)  A decrease in the danger of this job. 
D)  An improvement in the working conditions associated with this job. 
E)  An increase in the number of workers with the skills for this job. 
A)  A decrease in the amount of training needed to perform this job. 
B)  An increase in the danger of this job. 
C)  A decrease in the danger of this job. 
D)  An improvement in the working conditions associated with this job. 
E)  An increase in the number of workers with the skills for this job.

Question 16

Which of the following about employment discrimination is true?

Accepted Answer

A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of productivity. 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of white men. 
C)  If minority and white employees in a skill category are equally productive, the profit motive provides employers with a strong incentive to hire minority employees if they are available at a lower wage. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of worker preference. 
A)  Employers who discriminate against blacks and other minorities will have lower costs than rival firms that hire employees strictly on the basis of productivity. 
B)  After adjusting for factors such as education, experience, and location, the earnings of black men are almost identical to the earnings of white men. 
C)  If minority and white employees in a skill category are equally productive, the profit motive provides employers with a strong incentive to hire minority employees if they are available at a lower wage. 
D)  The empirical evidence indicates that the earnings gap between whites and blacks is entirely the result of worker preference.

Question 17

Compared to the general population, millionaires are more likely to be

Accepted Answer

A)  well-educated. 
B)  relatively old. 
C)  self-employed. 
D)  all of the above. 
E)  only b and c above. 
A)  well-educated. 
B)  relatively old. 
C)  self-employed. 
D)  all of the above. 
E)  only b and c above.

Question 18

In a market economy, which of the following is most important if one is going to achieve high earnings?

Accepted Answer

A)  Willingness to do hard physical work. 
B)  Providing goods and/or services that others value highly. 
C)  Performing an important social function, like teaching. 
D)  Having a membership in a labor union. 
A)  Willingness to do hard physical work. 
B)  Providing goods and/or services that others value highly. 
C)  Performing an important social function, like teaching. 
D)  Having a membership in a labor union.

Question 19

Which of the following is the primary source of rapid growth in the real earnings of workers?

Accepted Answer

A)  Strong unions. 
B)  Government regulation of labor markets. 
C)  Rapid growth in worker productivity. 
D)  Increases in the minimum wage. 
A)  Strong unions. 
B)  Government regulation of labor markets. 
C)  Rapid growth in worker productivity. 
D)  Increases in the minimum wage.

Question 20

If there is employment discrimination against minorities, this will cause the

Accepted Answer

A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise. 
A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise.

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

No questions exist for this section.

Which of the following would cause the demand for plumbers to decrease?

If Congress suddenly passes legislation that required all U.S. workers to receive the same annual pay, we would expect

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Firms will only adopt more automated methods of production when

Which of the following is most likely to reduce the market wage rate in a job category?

Which of the following is true?

A compensation structure that generates much higher pay rates for the top performers, while those whose productivity is only a little lower receive substantially less compensation, is called

Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?

The tournament pay explanation is useful in an attempt to explain why

If a firm refuses to hire any minorities due to a personal prejudice, its profits

Automated production methods are only attractive when they

Which of the following would be most likely to cause an increase in the wage rate for a particular job?

Which of the following about employment discrimination is true?

Compared to the general population, millionaires are more likely to be

In a market economy, which of the following is most important if one is going to achieve high earnings?

Which of the following is the primary source of rapid growth in the real earnings of workers?

If there is employment discrimination against minorities, this will cause the

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

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Exam 13: Earnings, Productivity, and the Job Market

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

No questions exist for this section.

Which of the following would cause the demand for plumbers to decrease?

If Congress suddenly passes legislation that required all U.S. workers to receive the same annual pay, we would expect

What is the most probable reason why garbage collectors have higher wages than bookkeepers?

Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be

Firms will only adopt more automated methods of production when

Which of the following is most likely to reduce the market wage rate in a job category?

Which of the following is true?

A compensation structure that generates much higher pay rates for the top performers, while those whose productivity is only a little lower receive substantially less compensation, is called

Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?

The tournament pay explanation is useful in an attempt to explain why

If a firm refuses to hire any minorities due to a personal prejudice, its profits

Automated production methods are only attractive when they

Which of the following would be most likely to cause an increase in the wage rate for a particular job?

Which of the following about employment discrimination is true?

Compared to the general population, millionaires are more likely to be

In a market economy, which of the following is most important if one is going to achieve high earnings?

Which of the following is the primary source of rapid growth in the real earnings of workers?

If there is employment discrimination against minorities, this will cause the

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Gaining From International Trade

Filters