Exam 19: Earnings and Discrimination

Figure 19-7 ​ ​ -Refer to Figure 19-7. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Discrimination is a reflection of some people's prejudice against certain groups in society.

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?

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?

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

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

Name two occupations that have the two characteristics required for the superstar phenomenon.

According to research by Bertrand and Mullainathan, which job applicants, those with "white" names or those with "black" names, received more calls from interested employers? What percent more?

Over the past 30 years, the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S. As a result, the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing.

Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

The "beauty premium" can be explained by the fact that

Evidence of differences in average wages of women compared to men

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Most economists believe that the higher average salaries earned by men in comparison to women arise from

On average professors of finance earn more than professors of economics. Other things the same, what does this imply about the supply of each type of professor?

Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

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. What conclusion can you draw about women's wages compared to men's wages in this industry?

What is the term for offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics?