Exam 19: Earnings and Discrimination

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

According to the human-capital view, education

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

Which of the following is an example of customer discrimination?

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

Labor unions will raise the quantity of labor demanded.

Effective minimum-wage laws will most likely

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Economists who study labor markets have discovered that

The difference in wages that results from nonmonetary characteristics of different jobs is called the

Compensating differentials are differences in wages related to the characteristics of a job.

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Economists found evidence of discrimination in each of the following markets except

A difference in wages that reflects differences in the nonpay features of two jobs is called

Which of the following statements is not correct?

Sally and Harry both work at the local factory producing cars. Sally earns $22 per hour working the day shift, and Harry earns $25 per hour working the night shift. Sally and Harry do the same job, have the same experience, and have the same level of education. This means that the

Customer discrimination is illegal in the United States.

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs, especially for those workers who deal with the public.