Exam 19: Earnings and Discrimination

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

On average professors of finance earn more than professors of economics. Other things the same, what does this imply about the supply of each type of professor?

The statement that "the rich get richer, and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Economists typically explain occupational differences between men and women through preferences, ability, and discrimination. What additional factor did economists Muriel Niederle and Lise Vesterlund add to this list?

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?

Which of the following scenarios would serve to decrease the demand for unskilled labor in the U.S.?

People are willing to invest in human capital because

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Scenario 19-2 Travis, a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park. -Refer to Scenario 19-2. Travis is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Travis concludes that

If there is systematic discrimination against a group of workers, then the wage paid to those workers likely will be

Figure 19-7 -Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, when a minimum wage of $18 per hour is imposed in this market, how many unemployed workers result?