Question 1

Which theory states that education is correlated with natural ability?

Accepted Answer

The answer of Which theory states that education is correlated...

Question 2

Figure 19-4  
-Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Accepted Answer

A) rise from $15 per hour to $18 per hour and 100 fewer people will be employed. 
B) rise from $15 per hour to $18 per hour and 200 more people will be employed. 
C) fall from $15 per hour to $12 per hour and 100 more people will be employed. 
D) fall from $18 per hour to $15 per hour and 200 fewer people will be employed. 
A) rise from $15 per hour to $18 per hour and 100 fewer people will be employed. 
B) rise from $15 per hour to $18 per hour and 200 more people will be employed. 
C) fall from $15 per hour to $12 per hour and 100 more people will be employed. 
D) fall from $18 per hour to $15 per hour and 200 fewer people will be employed.

Question 3

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

Accepted Answer

A) The job does not require specialized skills. 
B) The job is easy. 
C) The job is incredibly dull. 
D) The job has minimal risk of injury. 
A) The job does not require specialized skills. 
B) The job is easy. 
C) The job is incredibly dull. 
D) The job has minimal risk of injury.

Question 4

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A) Restaurant customers preferred to be waited on by white waitresses rather than black waitresses. 
B) Black basketball players earned more than white basketball players. 
C) Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal. 
D) Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa. 
A) Restaurant customers preferred to be waited on by white waitresses rather than black waitresses. 
B) Black basketball players earned more than white basketball players. 
C) Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal. 
D) Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.

Question 5

Figure 19-5  
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 400 
A) 100 
B) 200 
C) 300 
D) 400

Question 6

The superstar phenomenon applies to

Accepted Answer

A) all famous people equally. 
B) any type of worker who has high productivity. 
C) markets where technology allows the best producer to supply every customer at a low cost. 
D) markets where a small group of workers produce a much higher quality product than the average worker. 
A) all famous people equally. 
B) any type of worker who has high productivity. 
C) markets where technology allows the best producer to supply every customer at a low cost. 
D) markets where a small group of workers produce a much higher quality product than the average worker.

Question 7

Lucy and Lincoln are salespeople working for the same company with equal skills, ability, and experience. Both are paid a small base salary but the majority of their compensation is in the form of a commission, which is a percentage of the sales they make. Lucy earns more each year than Lincoln. What can you conclude about Lucy and Lincoln?

Accepted Answer

Lucy is more product

Question 8

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Accepted Answer

A) True 
 B)False

Question 9

The theory of efficiency wages challenges the assumption that

Accepted Answer

A) workers are efficient. 
B) workers have an incentive to shirk their responsibilities to their employers. 
C) wages must always adjust to balance labor supply and labor demand. 
D) firms sometimes choose to pay their workers above-equilibrium wages. 
A) workers are efficient. 
B) workers have an incentive to shirk their responsibilities to their employers. 
C) wages must always adjust to balance labor supply and labor demand. 
D) firms sometimes choose to pay their workers above-equilibrium wages.

Question 10

The most popular movie stars have high incomes for a number of reasons. One such reason is

Accepted Answer

A) an ability for almost everyone to enjoy movies at a relatively low cost. 
B) the above-average intellect of the average movie star. 
C) a compensating differential. 
D) a lack of technological advances in the movie industry. 
A) an ability for almost everyone to enjoy movies at a relatively low cost. 
B) the above-average intellect of the average movie star. 
C) a compensating differential. 
D) a lack of technological advances in the movie industry.

Question 11

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Accepted Answer

A) True 
 B)False

Question 12

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Accepted Answer

The answer of According to economists Hamermesh and Biddle, how...

Question 13

Economists have found evidence that differences in wages can be explained by

Accepted Answer

A) experience 
B) job characteristics 
C) physical attractiveness 
D) All of the above are correct. 
A) experience 
B) job characteristics 
C) physical attractiveness 
D) All of the above are correct.

Question 14

Why is a construction worker never likely to earn as much as a famous athlete?

Accepted Answer

A) Compensating differentials create a higher wage for professional athletes. 
B) Technological progress has advanced less in the construction industry then in sports training. 
C) Productivity levels are low in the construction industry due to the high number of people willing to be construction workers. 
D) A construction worker can provide his services to only a limited number of customers. 
A) Compensating differentials create a higher wage for professional athletes. 
B) Technological progress has advanced less in the construction industry then in sports training. 
C) Productivity levels are low in the construction industry due to the high number of people willing to be construction workers. 
D) A construction worker can provide his services to only a limited number of customers.

Question 15

Which of the following statements is not correct?

Accepted Answer

A) Both the human capital theory and the signaling theory of education could explain why college graduates earn more than high school graduates. 
B) The signaling theory of education suggests that the ability to complete a college degree is correlated with the ability to perform well in the labor market. 
C) If the human capital theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages. 
D) If the signaling theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages. 
A) Both the human capital theory and the signaling theory of education could explain why college graduates earn more than high school graduates. 
B) The signaling theory of education suggests that the ability to complete a college degree is correlated with the ability to perform well in the labor market. 
C) If the human capital theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages. 
D) If the signaling theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.

Question 16

Evidence from a study of the market for baseball players using 1960s data

Accepted Answer

A) indicated that sports with strong player associations are unlikely to experience wage discrimination. 
B) suggested that government regulation had eliminated most evidence of wage discrimination. 
C) found some evidence of consumer-driven wage discrimination. 
D) found that measurement of marginal productivity was very difficult for baseball players. 
A) indicated that sports with strong player associations are unlikely to experience wage discrimination. 
B) suggested that government regulation had eliminated most evidence of wage discrimination. 
C) found some evidence of consumer-driven wage discrimination. 
D) found that measurement of marginal productivity was very difficult for baseball players.

Question 17

Which of the following is considered human capital?

Accepted Answer

A) the ingredients a chef uses to prepare meals 
B) the pots and pans and other tools a chef uses to prepare meals 
C) the financial capital a chef uses to start his own restaurant 
D) the skills a chef learns when attending a class about cake decorating 
A) the ingredients a chef uses to prepare meals 
B) the pots and pans and other tools a chef uses to prepare meals 
C) the financial capital a chef uses to start his own restaurant 
D) the skills a chef learns when attending a class about cake decorating

Question 18

Which of the following is an example of a compensating differential?

Accepted Answer

A) paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal 
B) paying workers who work on the day shift lower wages than workers who work the night shift, all else equal 
C) paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal 
D) All of the above are examples of compensating differentials. 
A) paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal 
B) paying workers who work on the day shift lower wages than workers who work the night shift, all else equal 
C) paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal 
D) All of the above are examples of compensating differentials.

Question 19

Discrimination by a manager in the hiring process

Accepted Answer

A) decreases the firm's costs. 
B) increases the firm's costs. 
C) is evident if a white manager refuses to hire a certain black applicant. 
D) is evident if a male manager fails to hire a certain female applicant. 
A) decreases the firm's costs. 
B) increases the firm's costs. 
C) is evident if a white manager refuses to hire a certain black applicant. 
D) is evident if a male manager fails to hire a certain female applicant.

Question 20

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald) and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. Competition in the market for haircuts is consistent with which of the following statements?

Accepted Answer

A) Firms hiring nonbald barbers will have a cost advantage, leading to an increase in the demand for nonbald barbers. 
B) All firms that hire only bald barbers will go out of business. 
C) Firms hiring bald barbers will enter the market, increasing the demand for bald barbers. 
D) Firms hiring nonbald barbers will enter the market, increasing the demand for nonbald barbers. 
A) Firms hiring nonbald barbers will have a cost advantage, leading to an increase in the demand for nonbald barbers. 
B) All firms that hire only bald barbers will go out of business. 
C) Firms hiring bald barbers will enter the market, increasing the demand for bald barbers. 
D) Firms hiring nonbald barbers will enter the market, increasing the demand for nonbald barbers.

Exam 19: Earnings and Discrimination

Which theory states that education is correlated with natural ability?

Figure 19-4 -Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

The superstar phenomenon applies to

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

The theory of efficiency wages challenges the assumption that

The most popular movie stars have high incomes for a number of reasons. One such reason is

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Economists have found evidence that differences in wages can be explained by

Why is a construction worker never likely to earn as much as a famous athlete?

Which of the following statements is not correct?

Evidence from a study of the market for baseball players using 1960s data

Which of the following is considered human capital?

Which of the following is an example of a compensating differential?

Discrimination by a manager in the hiring process

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

Applications: 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

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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