Question 1

Hypotheses described in the text, and that have been proposed to explain the rising wage gap between skilled and unskilled workers:

Accepted Answer

A) may be reasonable explanations for a country whose technology and participation in world markets have remained constant over the relevant time period 
B) may be complementary to one another 
C) must be mutually exclusive 
D) are, in fact, the only possible explanations for the observed wage gap 
A) may be reasonable explanations for a country whose technology and participation in world markets have remained constant over the relevant time period 
B) may be complementary to one another 
C) must be mutually exclusive 
D) are, in fact, the only possible explanations for the observed wage gap

Question 2

The statement 'the rich get richer, and the poor get poorer' is evident in the fact that:

Accepted Answer

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

Question 3

What is the definition of a union?

Accepted Answer

A) a group of employers whose goal is to keep wages above equilibrium levels 
B) a group of employers whose goal is to keep wages below equilibrium levels 
C) a group of employees whose goal is to keep wages above equilibrium levels 
D) a group of employees whose goal is to keep wages below equilibrium levels 
A) a group of employers whose goal is to keep wages above equilibrium levels 
B) a group of employers whose goal is to keep wages below equilibrium levels 
C) a group of employees whose goal is to keep wages above equilibrium levels 
D) a group of employees whose goal is to keep wages below equilibrium levels

Question 4

Which theory explains the fact that some firms may choose to pay their employees more than they would normally earn?

Accepted Answer

A) human capital theory 
B) signalling theory 
C) the theory of efficiency wages 
D) the efficient market hypothesis 
A) human capital theory 
B) signalling theory 
C) the theory of efficiency wages 
D) the efficient market hypothesis

Question 5

The 'beauty premium' can be explained by the fact that in some occupations, physical attractiveness of a worker may enhance the value of their marginal product.

Accepted Answer

A) True 
 B)False

Question 6

Economists usually agree that if a study shows conclusive evidence that education is directly tied to increases in productivity:

Accepted Answer

A) all students should be compelled to finish high school 
B) all students should be compelled to obtain a university degree 
C) nothing should be done 
D) the costs of education should also be considered 
A) all students should be compelled to finish high school 
B) all students should be compelled to obtain a university degree 
C) nothing should be done 
D) the costs of education should also be considered

Question 7

The wage difference between jobs that require education and those that don't:

Accepted Answer

A) is not likely to be related to productivity differences 
B) encourages workers to bear the cost of acquiring education 
C) is a barrier to obtaining an education 
D) does not affect the supply of workers in the different labour markets 
A) is not likely to be related to productivity differences 
B) encourages workers to bear the cost of acquiring education 
C) is a barrier to obtaining an education 
D) does not affect the supply of workers in the different labour markets

Question 8

Economists who are critical of the notion of comparable worth are likely to argue that:

Accepted Answer

A) the gender gap in wages is largely associated with discrimination in the labour market 
B) discrimination engendered by cultural bias is best solved by government intervention 
C) librarians should not be paid the same wage as an engineer 
D) the gender gap in wages is reflective of a compensating differential based on allocations in competitive labour markets 
A) the gender gap in wages is largely associated with discrimination in the labour market 
B) discrimination engendered by cultural bias is best solved by government intervention 
C) librarians should not be paid the same wage as an engineer 
D) the gender gap in wages is reflective of a compensating differential based on allocations in competitive labour markets

Question 9

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

Accepted Answer

A) male workers are compensated for attending university, while female workers generally are not 
B) female workers are compensated for attending university, while male workers generally are not 
C) neither gender receives a higher wage for attending university 
D) both genders receive a higher wage for attending university 
A) male workers are compensated for attending university, while female workers generally are not 
B) female workers are compensated for attending university, while male workers generally are not 
C) neither gender receives a higher wage for attending university 
D) both genders receive a higher wage for attending university

Question 10

Studies that try to measure the factors that explain wage differences have shown that:

Accepted Answer

A) influences on wage differences are found to be quite small 
B) few factors are not explicitly measurable 
C) measurable factors explain less than half of the variation in wages 
D) effort and ability are not likely to contribute to large differences in wages 
A) influences on wage differences are found to be quite small 
B) few factors are not explicitly measurable 
C) measurable factors explain less than half of the variation in wages 
D) effort and ability are not likely to contribute to large differences in wages

Question 11

The statement, 'coal miners are paid more than workers with similar levels of education', is likely to reflect the fact that:

Accepted Answer

A) coal mining is a declining industry 
B) coal exports are rising 
C) coal mining jobs are potentially more dangerous than jobs with comparable education requirements 
D) all coal mines use union labour 
A) coal mining is a declining industry 
B) coal exports are rising 
C) coal mining jobs are potentially more dangerous than jobs with comparable education requirements 
D) all coal mines use union labour

Question 12

Schools that direct females away from science and math courses are evidence of:

Accepted Answer

A) labour market discrimination 
B) culturally driven differences in human capital accumulation 
C) cultural transition 
D) all of the above 
A) labour market discrimination 
B) culturally driven differences in human capital accumulation 
C) cultural transition 
D) all of the above

Question 13

Which of the following are determinates of equilibrium wages:
(i) the supply of labour
(ii) the demand for labour
(iii) the non-monetary characteristics of the job

Accepted Answer

A) (i) only 
B) (ii) only 
C) (ii) and (iii) only 
D) (i), (ii) and (iii) 
A) (i) only 
B) (ii) only 
C) (ii) and (iii) only 
D) (i), (ii) and (iii)

Question 14

Sales commissions encourage workers to put in more effort, which raises their marginal product.

Accepted Answer

A) True 
 B)False

Question 15

Refer to the information provided.Which of the following statements would weaken Billy's case against his employer?

Accepted Answer

A) the other employees have high-school certificates and Billy does not 
B) Billy only works part-time and as a result has fewer hours of experience, even though he has been with the business longer 
C) Billy complains of lower back problems and as a result frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house 
D) all of the above 
A) the other employees have high-school certificates and Billy does not 
B) Billy only works part-time and as a result has fewer hours of experience, even though he has been with the business longer 
C) Billy complains of lower back problems and as a result frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house 
D) all of the above

Question 16

'The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers'.Evaluate this statement.

Accepted Answer

There are many explanations of

Question 17

The return to investment in human capital is observed:

Accepted Answer

A) in the wage differential between workers 
B) only when workers are assigned identical tasks 
C) in the low wages of educated factory workers 
D) in the high-school dropout rate in inner city urban school districts 
A) in the wage differential between workers 
B) only when workers are assigned identical tasks 
C) in the low wages of educated factory workers 
D) in the high-school dropout rate in inner city urban school districts

Question 18

The high incomes for superstars in the movie market can be attributed to the fact that:

Accepted Answer

A) there are not many good substitutes for the product offered 
B) people who become superstars have the best publicists 
C) superstars are very lucky individuals 
D) there are a lot less good movies being made at the moment 
A) there are not many good substitutes for the product offered 
B) people who become superstars have the best publicists 
C) superstars are very lucky individuals 
D) there are a lot less good movies being made at the moment

Question 19

The ownership of human capital:

Accepted Answer

A) is not generally transferable 
B) is easily transferable to multiple individuals 
C) is typically embodied in related physical capital 
D) may be subject to government restrictions on transferability 
A) is not generally transferable 
B) is easily transferable to multiple individuals 
C) is typically embodied in related physical capital 
D) may be subject to government restrictions on transferability

Question 20

When discrimination occurs as a result of prejudice, market solutions will not provide motive to end discrimination.

Accepted Answer

A) True 
 B)False

Exam 20: Earnings, Unions and Discrimination

Hypotheses described in the text, and that have been proposed to explain the rising wage gap between skilled and unskilled workers:

The statement 'the rich get richer, and the poor get poorer' is evident in the fact that:

What is the definition of a union?

Which theory explains the fact that some firms may choose to pay their employees more than they would normally earn?

The 'beauty premium' can be explained by the fact that in some occupations, physical attractiveness of a worker may enhance the value of their marginal product.

Economists usually agree that if a study shows conclusive evidence that education is directly tied to increases in productivity:

The wage difference between jobs that require education and those that don't:

Economists who are critical of the notion of comparable worth are likely to argue that:

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

Studies that try to measure the factors that explain wage differences have shown that:

The statement, 'coal miners are paid more than workers with similar levels of education', is likely to reflect the fact that:

Schools that direct females away from science and math courses are evidence of:

Which of the following are determinates of equilibrium wages: (i) the supply of labour (ii) the demand for labour (iii) the non-monetary characteristics of the job

Sales commissions encourage workers to put in more effort, which raises their marginal product.

Refer to the information provided.Which of the following statements would weaken Billy's case against his employer?

'The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers'.Evaluate this statement.

The return to investment in human capital is observed:

The high incomes for superstars in the movie market can be attributed to the fact that:

The ownership of human capital:

When discrimination occurs as a result of prejudice, market solutions will not provide motive to end discrimination.

Ten Lessons From 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

Application: 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

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

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 Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

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