Question 1

Which of the following statements is true of wages, educational attainment, and gender?

Accepted Answer

A) Male workers are compensated for attending college, while female workers generally are not. 
B) Female workers are compensated for attending college, while male workers generally are not. 
C) Both genders receive a higher wage for attending college. 
D) Neither gender receives a higher wage for attending college. 
A) Male workers are compensated for attending college, while female workers generally are not. 
B) Female workers are compensated for attending college, while male workers generally are not. 
C) Both genders receive a higher wage for attending college. 
D) Neither gender receives a higher wage for attending college.

Question 2

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience, education, lif

Question 3

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A) is unlikely to find evidence of wage differentials. 
B) can provide strong evidence of labor market discrimination. 
C) is likely to misinterpret apparent evidence of labor market discrimination. 
D) is accepted as superior to empirical work that does correct for differences in productivity of workers. 
A) is unlikely to find evidence of wage differentials. 
B) can provide strong evidence of labor market discrimination. 
C) is likely to misinterpret apparent evidence of labor market discrimination. 
D) is accepted as superior to empirical work that does correct for differences in productivity of workers.

Question 4

Major league baseball players get paid more than minor league baseball players because of

Accepted Answer

A) compensating differentials. 
B) higher levels of educational attainment. 
C) greater abilities. 
D) All of the above are correct. 
A) compensating differentials. 
B) higher levels of educational attainment. 
C) greater abilities. 
D) All of the above are correct.

Question 5

Evidence of discrimination in labor markets

Accepted Answer

A) applies only to race and gender. 
B) is conclusively identified by large differences in average wages rates between men and women. 
C) is difficult to verify by reference to differences in average wage rates. 
D) is more easily identified on the basis of race than gender. 
A) applies only to race and gender. 
B) is conclusively identified by large differences in average wages rates between men and women. 
C) is difficult to verify by reference to differences in average wage rates. 
D) is more easily identified on the basis of race than gender.

Question 6

The accumulation of investments in people, such as education and on-the-job training, is known as

Accepted Answer

A) physical capital. 
B) human capital. 
C) efficiency wage. 
D) compensating differentials. 
A) physical capital. 
B) human capital. 
C) efficiency wage. 
D) compensating differentials.

Question 7

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Accepted Answer

A) the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years. 
B) developing countries do not pay workers the value of their marginal product. 
C) developed economies export high-skill jobs to developing countries. 
D) All of the above are correct. 
A) the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years. 
B) developing countries do not pay workers the value of their marginal product. 
C) developed economies export high-skill jobs to developing countries. 
D) All of the above are correct.

Question 8

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Accepted Answer

A) most countries but not in the United States. 
B) the United States but not in most other countries. 
C) the United States and in most other countries. 
D) None of the above is correct; the evidence fails to indicate that human capital is a significant factor in determining earnings anywhere in the world. 
A) most countries but not in the United States. 
B) the United States but not in most other countries. 
C) the United States and in most other countries. 
D) None of the above is correct; the evidence fails to indicate that human capital is a significant factor in determining earnings anywhere in the world.

Question 9

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 10

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Accepted Answer

A) one hypothesis emphasizes education, and the other emphasizes compensating differentials. 
B) one hypothesis emphasizes education, and the other international trade. 
C) one hypothesis emphasizes international trade, and the other emphasizes technology. 
D) one hypothesis emphasizes technology, and the other emphasizes compensating differentials. 
A) one hypothesis emphasizes education, and the other emphasizes compensating differentials. 
B) one hypothesis emphasizes education, and the other international trade. 
C) one hypothesis emphasizes international trade, and the other emphasizes technology. 
D) one hypothesis emphasizes technology, and the other emphasizes compensating differentials.

Question 11

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 12

Which of the following statements is correct?

Accepted Answer

A) The human-capital theory of education could be called a productivity-enhancing theory. 
B) The human-capital theory of education could be called a productivity-revealing theory. 
C) The signaling theory of education could be called a productivity-enhancing theory. 
D) The signaling theory of education has been disproven by a number of prominent economists. 
A) The human-capital theory of education could be called a productivity-enhancing theory. 
B) The human-capital theory of education could be called a productivity-revealing theory. 
C) The signaling theory of education could be called a productivity-enhancing theory. 
D) The signaling theory of education has been disproven by a number of prominent economists.

Question 13

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

Accepted Answer

A) the long breaks and limited work days 
B) the stress they face 
C) the comparatively low level of education required 
D) All of the above are correct. 
A) the long breaks and limited work days 
B) the stress they face 
C) the comparatively low level of education required 
D) All of the above are correct.

Question 14

After an employer pays the cost of educating a worker,

Accepted Answer

A) the worker has a higher level of human capital. 
B) the worker should become more productive. 
C) the worker might look for another job unless his employer pays him more. 
D) All of the above are correct. 
A) the worker has a higher level of human capital. 
B) the worker should become more productive. 
C) the worker might look for another job unless his employer pays him more. 
D) All of the above are correct.

Question 15

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the

Accepted Answer

A) human capital theory. 
B) discrimination theory. 
C) compensating differential theory. 
D) signaling theory. 
A) human capital theory. 
B) discrimination theory. 
C) compensating differential theory. 
D) signaling theory.

Question 16

Scenario 19-5
Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5. In a competitive market for grocery store employees, why might Jason's wage differential persist?

Accepted Answer

A) Jason works harder than the other employees. 
B) Jason may choose to do tasks other workers find undesirable. 
C) Jason's amiable personality allows him to work well with his co-workers. 
D) None of the above is correct. 
A) Jason works harder than the other employees. 
B) Jason may choose to do tasks other workers find undesirable. 
C) Jason's amiable personality allows him to work well with his co-workers. 
D) None of the above is correct.

Question 17

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 18

Discrimination is an emotionally charged issue that is impossible to study objectively.

Accepted Answer

A) True 
 B)False

Question 19

Figure 19-7  
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. Suppose the current labor demand is D1 and the current labor supply is S1. If a firm in this market decided to pay its workers $18 per hour to increase the productivity of its workers, this firm would be paying a(n)

Accepted Answer

The answer of Figure 19-7  
-Refer to Figure 19-7....

Question 20

Suppose that Philip is the best contractor in town, and he makes $400,000 a year. Suppose that Julia Roberts is the best and highest paid actress in Hollywood, and she makes $13 million per movie. Both are the best in their respective fields of work. One reason for the significant difference in incomes has to do with the nature of the service each offers. Philip's contracting services

Accepted Answer

A) can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year. 
B) can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies. 
C) can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies. 
D) can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year. 
A) can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year. 
B) can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies. 
C) can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies. 
D) can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.

Exam 19: Earnings and Discrimination

Which of the following statements is true of wages, educational attainment, and gender?

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Empirical work that does not account for differences in the productivity of workers

Major league baseball players get paid more than minor league baseball players because of

Evidence of discrimination in labor markets

The accumulation of investments in people, such as education and on-the-job training, is known as

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

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

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

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

Which of the following statements is correct?

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

After an employer pays the cost of educating a worker,

Evidence of discrimination is most apparent when one compares wages among broad groups.

Discrimination is an emotionally charged issue that is impossible to study objectively.

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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