Exam 19: Earnings and Discrimination

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

According to proponents of the signaling theory of education,

The return to investment in human capital is observed

In the signaling theory of education,

Efficiency wages may decrease employee turnover.

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

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

Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?

George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Why do college graduates earn more in wages than workers with only a high school diploma?

Which of the following statements represents the idea behind signaling in education?

Which of the following is not an example of capital used in production?

Sometimes workers earn higher wages through chance.

Scenario 19-3 In the small town of Hamilton, Montana, there is a local hardware store called Eddy's Hardware. There are only two types of workers who apply for jobs at Eddy's Hardware: cowboys and farm boys. Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against farm boys. Eddy's Hardware denies the complaint and says the store is only trying to maximize profit. -Refer to Scenario 19-3. Which of the following statements would strengthen the discrimination complaint against Eddy's Hardware?

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Which of the following statements is true of wages, educational attainment, and gender?

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Figure 19-6​ -Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. If a labor union forms within the widget industry and subsequently negotiates an hourly wage of $20.00, how many hours of labor will be demanded by the widget industry?