Exam 19: Earnings and Discrimination

Tiffany has just graduated from Stanford University and has applied for a job as an engineer at a manufacturing plant. The manufacturer decides to offer Tiffany a job because it perceives she's gained valuable skills while at Stanford. To which of the following views of education does the manufacturer subscribe?

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

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

Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay

A difference in wages between a highly-educated worker and a less-educated worker

Which of the following is not an interpretation of the "beauty premium"?

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. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?

The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Gerald earns a higher salary than his brother Peter because Gerald went to law school and is a lawyer, whereas Peter dropped out of college to work as a mechanic. The difference in salary illustrates a compensating differential.

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

The ownership of human capital

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

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

In recent years, the amount of international trade in which the United States engages has increased. Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Which theory states that education makes workers more productive?

In recent years, the amount of international trade in which the United States engages has

The fact that doctors are paid more than economics professors is an example of a compensating differential.

A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect