Question 1

If there is systematic discrimination against a group of workers, then the wage paid to those workers likely will be

Accepted Answer

A) lower due to a higher supply of workers in that group. 
B) lower due to a lower demand for workers in that group. 
C) higher due to a lower supply of workers in that group. 
D) higher due to a higher demand for workers in that group. 
A) lower due to a higher supply of workers in that group. 
B) lower due to a lower demand for workers in that group. 
C) higher due to a lower supply of workers in that group. 
D) higher due to a higher demand for workers in that group.

Question 2

The ownership of human capital

Accepted Answer

A) is typically embodied in related physical capital. 
B) may be subject to government restrictions on transferability. 
C) is not easily transferable. 
D) often leads to lower wages. 
A) is typically embodied in related physical capital. 
B) may be subject to government restrictions on transferability. 
C) is not easily transferable. 
D) often leads to lower wages.

Question 3

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) Paying workers who have a higher educational attainment level higher wages than workers with less education, all else equal 
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) Paying workers who have a higher educational attainment level higher wages than workers with less education, all else equal

Question 4

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Accepted Answer

A) True 
 B)False

Question 5

In the presence of discrimination by customers,

Accepted Answer

A) market forces nevertheless always work to prevent discriminatory wage differentials. 
B) discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits. 
C) discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination. 
D) discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government. 
A) market forces nevertheless always work to prevent discriminatory wage differentials. 
B) discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits. 
C) discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination. 
D) discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government.

Question 6

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Accepted Answer

The answer of The theory of education that states firms...

Question 7

Figure 19-8
​   ​
-Refer to Figure 19-8. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?

Accepted Answer

The answer of Figure 19-8
​   ​
-Refer to Figure...

Question 8

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

Accepted Answer

A) True 
 B)False

Question 9

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Accepted Answer

The answer of Many economists believe that competitive, market economies...

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Scenario 19-7
​
Suppose that in the competitive market for auto repair, firms prefer to hire men rather than women. Assume that the women applying for positions have the same skills, experience, and work ethic as the men. As a result of this discrimination, the demand for women is lower than it otherwise would be.
-Refer to Scenario 19-7. If the firms in this market are profit-maximizers and customers do not care if a woman or a man works on their car, what will likely happen?

Accepted Answer

Women will be hired

Question 12

Table 19-1
 $$\begin{array} { | l | l | l | } 
\hline& \mathbf { 1 9 7 5 } & \mathbf { 2 0 1 1 }\ 
\hline \text { Men } & \
\hline \text { High school, no college } & \$ 48,720 &\$46,038 \
\hline \text { College graduates } & \$ 69,146 & \$ 80,508 \
\hline \text { Percent extra for college grads } & + 42 \% & + 75 \% \
\hline & & \
\hline \text { Women } & & \
\hline \text { High school, no college } & \$ 28,006 & \$ 32,249 \
\hline \text { College graduates } & \$ 37,804 & \$ 58,229 \
\hline \text { Percent extra for college grads } & + 35 \% & + 81 \% \
\hline
\end{array}$$ Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. What conclusion can you draw about the changes in the gaps in earnings between skilled and unskilled workers between 1975 and 2011?

Accepted Answer

The gap ha

Question 13

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

Accepted Answer

The answer of Unions are often able to sustain wages...

Question 14

In a labor market free from discrimination, wages for workers that are employed by the same company will still differ.

Accepted Answer

A) True 
 B)False

Question 15

Experimental evidence indicates women choose less competitive environments than men.

Accepted Answer

A) True 
 B)False

Question 16

Wages of doctors tend to be higher than wages of dental hygienists. Which of the following is not a compensating differential explaining the difference in wages?

Accepted Answer

A) Doctors have the stress of being responsible for other peoples' lives, whereas dental hygienists do not. 
B) Doctors are on call to work nights and weekends, whereas dental hygienists work traditional business hours. 
C) Doctors must pay for malpractice insurance in case they are sued for a mistake on the job. 
D) Doctors often work in the safe environment of a hospital where dental hygienists do not. 
A) Doctors have the stress of being responsible for other peoples' lives, whereas dental hygienists do not. 
B) Doctors are on call to work nights and weekends, whereas dental hygienists work traditional business hours. 
C) Doctors must pay for malpractice insurance in case they are sued for a mistake on the job. 
D) Doctors often work in the safe environment of a hospital where dental hygienists do not.

Question 17

Scenario 19-1
Ferris B., a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for lifeguards to patrol the beach at an exclusive island resort in the Caribbean. Recruiter B is looking for workers to staff positions at a summer youth camp.
-Refer to Scenario 19-1. Ferris is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Ferris concludes that

Accepted Answer

A) wages are unlikely to be affected by job requirements. 
B) since the lifeguard job would expose him to a threat of skin cancer, the wage will be low. 
C) if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise. 
D) if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise. 
A) wages are unlikely to be affected by job requirements. 
B) since the lifeguard job would expose him to a threat of skin cancer, the wage will be low. 
C) if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise. 
D) if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise.

Question 18

Chloe and Adrian went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Adrian's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Chloe's employer is a savvy business manager and the sales manager is experienced and works hard. If Chloe has higher earnings than Adrian, the difference is most likely a function of

Accepted Answer

A) chance. 
B) differences in human capital. 
C) differences in signaling. 
D) discrimination. 
A) chance. 
B) differences in human capital. 
C) differences in signaling. 
D) discrimination.

Question 19

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Accepted Answer

A) True 
 B)False

Question 20

Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is

Accepted Answer

customer d

Exam 19: Earnings and Discrimination

If there is systematic discrimination against a group of workers, then the wage paid to those workers likely will be

The ownership of human capital

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

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

In the presence of discrimination by customers,

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Figure 19-8 ​ ​ -Refer to Figure 19-8. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

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.

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

In a labor market free from discrimination, wages for workers that are employed by the same company will still differ.

Experimental evidence indicates women choose less competitive environments than men.

Wages of doctors tend to be higher than wages of dental hygienists. Which of the following is not a compensating differential explaining the difference in wages?

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is

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 Nations 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

Filters

Figure 19-8 -Refer to Figure 19-8. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, what is the equilibrium wage and quantity of labor?