Question 1

Discrimination is usually not a profit-maximizing strategy.

Accepted Answer

A) True 
 B)False

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

After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn't provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer.

Accepted Answer

Compensating differentials refer to diff

Question 4

The idea of paying workers an efficiency wage is that

Accepted Answer

A) employers will find it profitable to hire more workers. 
B) workers receive wages consistent with their specific compensating differentials. 
C) workers and management gain at the expense of the stockholders of the company. 
D) workers have the incentive to work harder, thus increasing their marginal productivity. 
A) employers will find it profitable to hire more workers. 
B) workers receive wages consistent with their specific compensating differentials. 
C) workers and management gain at the expense of the stockholders of the company. 
D) workers have the incentive to work harder, thus increasing their marginal productivity.

Question 5

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Accepted Answer

The answer of Many studies of wage discrimination have been...

Question 6

Scenario 19-6
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, whereas unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.
-Refer to Scenario 19-6. If some families strongly prefer their children to be tutored by male tutors, then

Accepted Answer

A) the difference in male and female tutor wages will eventually disappear. 
B) biased tutoring centers can charge more for tutoring to offset the higher cost of hiring only male tutors. 
C) all unbiased tutoring centers will go out of business in the long run. 
D) all biased tutoring centers will make a profit in the short run, but will go out of business in the long run. 
A) the difference in male and female tutor wages will eventually disappear. 
B) biased tutoring centers can charge more for tutoring to offset the higher cost of hiring only male tutors. 
C) all unbiased tutoring centers will go out of business in the long run. 
D) all biased tutoring centers will make a profit in the short run, but will go out of business in the long run.

Question 7

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

Accepted Answer

The answer of Superstars arise in markets in which every...

Question 8

Which of the following scenarios would serve to decrease the demand for unskilled labor in the United States?

Accepted Answer

A) Increased demand for goods produced by unskilled laborers 
B) Decreased international trade with countries where unskilled labor is more plentiful 
C) Decreased productivity gains among unskilled laborers 
D) Decreased supply of migrant workers 
A) Increased demand for goods produced by unskilled laborers 
B) Decreased international trade with countries where unskilled labor is more plentiful 
C) Decreased productivity gains among unskilled laborers 
D) Decreased supply of migrant workers

Question 9

Efficiency wages may decrease employee turnover.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following comparisons best illustrates a compensating differential?

Accepted Answer

A) Sydney's wage is higher than Caleb's because the value of Sydney's marginal product is higher than Caleb's. 
B) Helena's wage is higher than Cameron's because Helena is very personable, and Cameron is very gruff. 
C) Sofia's wage is higher than Amari's because Sofia's job may cause long-term health problems, and Amari's job will not impair his health. 
D) Damaris's wage is higher than Dontrell's because Damaris obtained a college degree, whereas Dontrell decided to start working after high school. 
A) Sydney's wage is higher than Caleb's because the value of Sydney's marginal product is higher than Caleb's. 
B) Helena's wage is higher than Cameron's because Helena is very personable, and Cameron is very gruff. 
C) Sofia's wage is higher than Amari's because Sofia's job may cause long-term health problems, and Amari's job will not impair his health. 
D) Damaris's wage is higher than Dontrell's because Damaris obtained a college degree, whereas Dontrell decided to start working after high school.

Question 11

Artie and Angelina attended the same university, graduated with the same degree and grade point average, and are equally productive in their identical new jobs. Still, Angelina's salary is 10% lower than Artie's salary. One can conclude that Angelina likely suffers from

Accepted Answer

The answer of Artie and Angelina attended the same university,...

Question 12

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 13

Labor-market discrimination based solely on age is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 14

Figure 19-6  
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $17.50. Which of the following statements about the impact of the union's formation on labor hours demanded is true?

Accepted Answer

A) Labor hours demanded by widget firms will decrease by 10 hours. 
B) Labor hours demanded by widget firms will decrease by 15 hours. 
C) Labor hours demanded by widget firms will increase by 10 hours. 
D) Labor hours demanded by widget firms will increase by 15 hours. 
A) Labor hours demanded by widget firms will decrease by 10 hours. 
B) Labor hours demanded by widget firms will decrease by 15 hours. 
C) Labor hours demanded by widget firms will increase by 10 hours. 
D) Labor hours demanded by widget firms will increase by 15 hours.

Question 15

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect the

Accepted Answer

A) demand for female labor to be lower than the demand for male labor. 
B) demand for female labor to be higher than the demand for male labor. 
C) supply of female labor to be lower than the demand for male labor. 
D) supply of female labor to be higher than the supply of male labor. 
A) demand for female labor to be lower than the demand for male labor. 
B) demand for female labor to be higher than the demand for male labor. 
C) supply of female labor to be lower than the demand for male labor. 
D) supply of female labor to be higher than the supply of male labor.

Question 16

Consumers are often a primary source of discrimination in labor markets.

Accepted Answer

A) True 
 B)False

Question 17

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, which of the following is not a possible explanation for this wage differential?

Accepted Answer

A) Discrimination against people from the west exists. 
B) People from the east receive compensating differentials. 
C) People from the west have lower levels of human capital. 
D) People from the east put forth less effort in their work. 
A) Discrimination against people from the west exists. 
B) People from the east receive compensating differentials. 
C) People from the west have lower levels of human capital. 
D) People from the east put forth less effort in their work.

Question 18

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Accepted Answer

A) True 
 B)False

Question 19

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may include job

Question 20

Customer discrimination is illegal in the United States.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Discrimination is usually not a profit-maximizing strategy.

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.

The idea of paying workers an efficiency wage is that

Many studies of wage discrimination have been conducted on professional sports teams. This industry is easier to study than others because the professional teams have many objective measures of

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

Which of the following scenarios would serve to decrease the demand for unskilled labor in the United States?

Efficiency wages may decrease employee turnover.

Which of the following comparisons best illustrates a compensating differential?

Artie and Angelina attended the same university, graduated with the same degree and grade point average, and are equally productive in their identical new jobs. Still, Angelina's salary is 10% lower than Artie's salary. One can conclude that Angelina likely suffers from

Discrimination by a manager in the hiring process

Labor-market discrimination based solely on age is illegal in the United States.

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect the

Consumers are often a primary source of discrimination in labor markets.

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Customer discrimination is illegal in the United States.

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

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