Exam 20: Earnings, Unions and Discrimination

An economy has two jobs, one that requires education and one that does not.If the wage difference between the two jobs is not sufficient for individual workers to make a return on their investment in education, it is likely that:

Superstars tend to earn more than professionals because: (i) there are few substitutes for their service (ii) an extremely high value is placed on their services by the individuals who consume them (iii) superstars are able to provide every consumer with their services at a low cost

Refer to the information provided.If consumers do not discriminate between bald barbers and barbers with hair, then:

The basic neoclassical theory of the labour market predicts that:

Which of the following statements is false?

How does the theory of efficiency wages explain above-equilibrium wages?

Doppelsöldners were sixteenth century German soldiers (landsknechts) that received double pay for volunteering to fight in the front of their unit.This typically meant they were the first to engage the enemy.Assuming that their training and equipment was identical to other landsknechts, why were their wages so much higher?

Explain the role of compensating differentials in explaining the difference between the average wages of men and women.

List the productivity factors that may explain the difference 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 affect the pay gap over time.

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

Wage compensation is likely to be a function of which of the following?

If every customer wants to enjoy the good of one producer, and the producer can supply the good to every customer at a low cost, then this is known as:

Library assistants are known to have low wages.This is likely to be partly explained by the fact that:

One of the reasons that movie stars have extraordinarily high incomes is that:

The compensating differential refers to:

When a worker is deciding whether to take a job or not:

The statement that 'public school teachers are paid less than engineers, but have similar amounts of education', is likely to reflect market conditions such that:

The fact that women are more likely to interrupt their careers to raise children reflects:

On the basis of knowledge obtained in his economics class, Ferris is likely to conclude that:

Effective minimum wage laws will most likely result in which of the following? (i) an increased demand for labour (ii) a surplus of labour (iii) unemployment