Exam 19: Earnings and Discrimination

Professional underwater divers are known to have high wages and work an average of only 20 hours per week. Which of the following would push the divers' wages higher?

Discrimination is a reflection of some people's prejudice against certain groups in society.

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

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?

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

Which of the following explains the "beauty premium" differences in wages?

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?

When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers.

Education raises wages because the demanders of labor

Paul and David work for the same company and have the same job title, education, work experience, and are equally skilled at what they do. Paul works the night shift and is paid $60,000 a year, while David works a regular day shift and is paid $55,000 a year. Which of the following is the best explanation for why Paul earns more than David?

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major), they are providing evidence in support of the

Most economists believe that the higher average salaries earned by men in comparison to women arise from

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Which of the following would both make a worker's wage higher than otherwise?

Figure 19-3 The manufacturing labor market. -Refer to Figure 19-3. Suppose the manufacturing labor market, which is non-unionized, is in equilibrium at a wage equal to $20. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. After the workers become unionized, how many workers do manufacturing firms collectively hire?

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

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Dr. Benson is regarded as, by far, the best dentist in his part of the country, yet his income is not significantly higher than the average income for a dentist in his area. In contrast, Bo Johnson, the best baseball player in that region, earns five times the average salary of all baseball players. The most likely explanation is that