Exam 19: Earnings and Discrimination

Scenario 19-7 Mark works full time at a large accounting firm. Mark has been at the firm for four years but has not been given a promotion, even though newer employees have already been promoted. Mark believes he is a victim of labor-market discrimination, and threatens to hire a lawyer to sue the company. ​ -Refer to Scenario 19-7. Which of the following would strengthen Mark's case against his employer?

Hunter is an ambitious, competitive person who has always tried to be the best at everything he does. Consider the following job options facing Hunter and choose the option that will likely afford him the highest wage.

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. In 2011, on average how much more income would a man with a college degree earn than a man with a high school degree?

Which of the following is not an example of a compensating differential?

In the presence of discrimination by customers,

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.

Discrimination is usually not a profit-maximizing strategy.

Evidence of differences in average wages of women compared to men

If the signaling theory of education is correct,

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

Which of the following statements accurately explains the superstar phenomenon in wages?

For a "superstar" to emerge, it must be the case that

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Which of the following statements can be called a productivity-revealing theory?

The ownership of human capital

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. Economists, however, argue against this approach because

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

A group of firms working together and acting as a supplier of a product is called a cartel. A group of employees working together and acting as a single supplier of labor is called a

Figure 19-4 -Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Education and on-the-job training are sources of human capital.