Question 1

Which of the following would be considered an investment in human capital?

Accepted Answer

A) ​switching to working the night shift to receive a higher wage 
B) buying a new computer 
C) enrolling in a three-week course to learn more about a specific topic in your line of work 
D) quitting a job for health reasons. 
A) ​switching to working the night shift to receive a higher wage 
B) buying a new computer 
C) enrolling in a three-week course to learn more about a specific topic in your line of work 
D) quitting a job for health reasons.

Question 2

Expenditures on human capital

Accepted Answer

A) reflect an expectation of some future return on the investment. 
B) are generally embodied in a specific individual. 
C) reflect an investment of resources today to raise productivity in the future. 
D) All of the above are correct. 
A) reflect an expectation of some future return on the investment. 
B) are generally embodied in a specific individual. 
C) reflect an investment of resources today to raise productivity in the future. 
D) All of the above are correct.

Question 3

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Accepted Answer

A) virtually none of the variation in wages in our economy. 
B) some, but less than 50 percent of the variation in wages in our economy. 
C) about 75 percent of the variation in wages in our economy. 
D) almost all of the variation in wages in our economy. 
A) virtually none of the variation in wages in our economy. 
B) some, but less than 50 percent of the variation in wages in our economy. 
C) about 75 percent of the variation in wages in our economy. 
D) almost all of the variation in wages in our economy.

Question 4

Labor-market discrimination based solely on age is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 5

The term "compensating differential" refers to

Accepted Answer

A) the fact that workers who do similar work should be paid the same wage. 
B) the fact that some workers live further from their jobs than do other workers. 
C) a wage difference that is due to unionization of some firms but not others. 
D) a wage difference that arises from nonmonetary characteristics of different jobs. 
A) the fact that workers who do similar work should be paid the same wage. 
B) the fact that some workers live further from their jobs than do other workers. 
C) a wage difference that is due to unionization of some firms but not others. 
D) a wage difference that arises from nonmonetary characteristics of different jobs.

Question 6

List three reasons why wages could be set above the equilibrium wage.

Accepted Answer

minimum-wage laws
ma

Question 7

Which of the following variables related to a worker's wage are the most difficult to measure?

Accepted Answer

A) ability, effort, and chance 
B) job characteristics, gender, and race 
C) gender, race, and geographic location 
D) years of schooling, age, and years of experience 
A) ability, effort, and chance 
B) job characteristics, gender, and race 
C) gender, race, and geographic location 
D) years of schooling, age, and years of experience

Question 8

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Accepted Answer

A) 10% more than men with a high school education. 
B) 25% more than men with a high school education. 
C) 75% more than men with a high school education. 
D) 90% more than men with a high school education. 
A) 10% more than men with a high school education. 
B) 25% more than men with a high school education. 
C) 75% more than men with a high school education. 
D) 90% more than men with a high school education.

Question 9

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Accepted Answer

A) True 
 B)False

Question 10

Economists argue competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the effectiveness of that natural remedy?

Accepted Answer

A) Some workers are members in unions. 
B) Some firms pay efficiency wages; others do not. 
C) Some customers are discriminatory in their buying habits. 
D) Some employees have accumulated more human capital than other employees. 
A) Some workers are members in unions. 
B) Some firms pay efficiency wages; others do not. 
C) Some customers are discriminatory in their buying habits. 
D) Some employees have accumulated more human capital than other employees.

Question 11

Nurses who work in hospitals often are required to work on weekends, whereas nurses who work in doctors' offices generally only work Monday through Friday. Hospital nurses who must work on weekends are usually paid more than nurses working in doctors' offices for the same work even if they have the same skills and education. This difference in pay is attributed to

Accepted Answer

A) an efficiency wage. 
B) compensating differential. 
C) differences in the marginal product of labor. 
D) differences in human capital. 
A) an efficiency wage. 
B) compensating differential. 
C) differences in the marginal product of labor. 
D) differences in human capital.

Question 12

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 union is established in this market and succeeds in raising the wage to $18 per hour, what is the change in the number of workers employed?

Accepted Answer

100 fewer

Question 13

The wage gap between skilled and unskilled worker has

Accepted Answer

A) risen; economists argue that this may be due in part to technological progress. 
B) risen; economists argue that none of the rise is due to technological progress. 
C) fallen; economists argue that this may be due in part to technological progress. 
D) fallen; economists argue that none of the fall is due to technological progress. 
A) risen; economists argue that this may be due in part to technological progress. 
B) risen; economists argue that none of the rise is due to technological progress. 
C) fallen; economists argue that this may be due in part to technological progress. 
D) fallen; economists argue that none of the fall is due to technological progress.

Question 14

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

Accepted Answer

A) age. 
B) years of experience. 
C) years of education. 
D) All of the above are forms of discrimination. 
A) age. 
B) years of experience. 
C) years of education. 
D) All of the above are forms of discrimination.

Question 15

A computer is an example of human capital.

Accepted Answer

A) True 
 B)False

Question 16

Workers in a labor union typically are paid less than workers not in a labor union.

Accepted Answer

A) True 
 B)False

Question 17

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Accepted Answer

A) the inability to calculate wage differentials. 
B) the inability to see changes in the wage differentials over a period of time. 
C) the difficulty in measuring productivity differences between workers. 
D) the difficulty in measuring female labor-force participation. 
A) the inability to calculate wage differentials. 
B) the inability to see changes in the wage differentials over a period of time. 
C) the difficulty in measuring productivity differences between workers. 
D) the difficulty in measuring female labor-force participation.

Question 18

In determining wages, ability, effort, and chance

Accepted Answer

A) probably play no role whatsoever. 
B) play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure. 
C) play a role, and that role is fully captured in easy-to-measure factors such as human capital and age. 
D) play a role, and it is fully explained within the context of compensating differentials. 
A) probably play no role whatsoever. 
B) play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure. 
C) play a role, and that role is fully captured in easy-to-measure factors such as human capital and age. 
D) play a role, and it is fully explained within the context of compensating differentials.

Question 19

Over the past several years, the earnings gap between high-skilled and low-skilled workers has widened because (i)
International trade has altered the relative demand for skilled and unskilled labor.
(ii)
Changes in technology have altered the relative demand for skilled and unskilled labor.
(iii)
The return to education for men has decreased, whereas the return to education for women has increased.

Accepted Answer

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

Question 20

The "beauty premium" can be explained by the fact that

Accepted Answer

A) marginal productivity in all occupations has a physical dimension. 
B) in some occupations, physical attractiveness of workers may enhance the value of their marginal product. 
C) beauty acts as an implicit signal of innate intelligence. 
D) beautiful people are likely to reflect "good breeding." 
A) marginal productivity in all occupations has a physical dimension. 
B) in some occupations, physical attractiveness of workers may enhance the value of their marginal product. 
C) beauty acts as an implicit signal of innate intelligence. 
D) beautiful people are likely to reflect "good breeding."

Which of the following would be considered an investment in human capital?

Expenditures on human capital

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Labor-market discrimination based solely on age is illegal in the United States.

The term "compensating differential" refers to

List three reasons why wages could be set above the equilibrium wage.

Which of the following variables related to a worker's wage are the most difficult to measure?

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Economists argue competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the effectiveness of that natural remedy?

The wage gap between skilled and unskilled worker has

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

A computer is an example of human capital.

Workers in a labor union typically are paid less than workers not in a labor union.

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

In determining wages, ability, effort, and chance

The "beauty premium" can be explained by the fact that

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 19: Earnings and Discrimination

Which of the following would be considered an investment in human capital?

Expenditures on human capital

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Labor-market discrimination based solely on age is illegal in the United States.

The term "compensating differential" refers to

List three reasons why wages could be set above the equilibrium wage.

Which of the following variables related to a worker's wage are the most difficult to measure?

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Economists argue competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the effectiveness of that natural remedy?

The wage gap between skilled and unskilled worker has

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

A computer is an example of human capital.

Workers in a labor union typically are paid less than workers not in a labor union.

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

In determining wages, ability, effort, and chance

The "beauty premium" can be explained by the fact that

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters