Question 1

The declining gender wage gap is best explained by which of the following?

Accepted Answer

A) women gaining more continuous work experience and delaying marriage 
B) women gaining more continuous work experience and have more favourable working conditions 
C) women gaining less continuous work experience and delaying marriage 
D) women gaining less continuous work experience and have more favourable working conditions 
A) women gaining more continuous work experience and delaying marriage 
B) women gaining more continuous work experience and have more favourable working conditions 
C) women gaining less continuous work experience and delaying marriage 
D) women gaining less continuous work experience and have more favourable working conditions

Question 2

Empirical analysis of wage differences have found evidence:

Accepted Answer

A) that suggests that physical appearance-related wage differentials among males are vastly different to such differentials among females 
B) of direct correlation between wages and attractiveness 
C) of a minor role played by omitted variables 
D) that the physical appearance of people in identical jobs is not likely to impact their wages 
A) that suggests that physical appearance-related wage differentials among males are vastly different to such differentials among females 
B) of direct correlation between wages and attractiveness 
C) of a minor role played by omitted variables 
D) that the physical appearance of people in identical jobs is not likely to impact their wages

Question 3

A likely consequence of implementing comparable worth proposals is that it would lead to:

Accepted Answer

A) an increase in the wage of male-dominated occupations 
B) an increase in the average gender wage gap 
C) an increase in female unemployment rates 
D) an increase in the female participation rate in previously male-dominated occupations 
A) an increase in the wage of male-dominated occupations 
B) an increase in the average gender wage gap 
C) an increase in female unemployment rates 
D) an increase in the female participation rate in previously male-dominated occupations

Question 4

A binding minimum wage law will decrease the quantity of labour demanded.

Accepted Answer

A) True 
 B)False

Question 5

All economic explanations of the gender pay gap are associated with discrimination both by consumers and employers, rather than differences in productivity.

Accepted Answer

A) True 
 B)False

Question 6

For any given level of output, unionisation leads to an increase in the value of the marginal product of labour.

Accepted Answer

A) True 
 B)False

Question 7

The theory of efficiency wages explains above-equilibrium wages by assuming that workers get a rise in wage when they prove they are increasing their productivity.

Accepted Answer

A) True 
 B)False

Question 8

A prestigious private high school requires all of its teachers to have a PhD in the subject they teach.This requirement is likely to:

Accepted Answer

A) decrease the supply of teachers to this school 
B) increase wages for teachers at the private school, relative to those at public schools 
C) increase the marginal product of teachers at the private school 
D) do all of the above 
A) decrease the supply of teachers to this school 
B) increase wages for teachers at the private school, relative to those at public schools 
C) increase the marginal product of teachers at the private school 
D) do all of the above

Question 9

Which of the following statements are true? Higher natural ability leads to higher wages because:
(i) those with higher natural ability will have a higher marginal product, all else equal
(ii) those with higher natural ability tend to exhibit higher work effort
(iii) people with higher natural ability deserve higher wages

Accepted Answer

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

Question 10

What was the main reason the gender gap did not narrow during the post-war years?

Accepted Answer

A) many of the women who entered the labour force had not worked for quite some time and therefore lacked experience 
B) employers were required to pay men more to do the same job women were doing 
C) women added more to marginal product than men 
D) all of the above 
A) many of the women who entered the labour force had not worked for quite some time and therefore lacked experience 
B) employers were required to pay men more to do the same job women were doing 
C) women added more to marginal product than men 
D) all of the above

Question 11

Arts majors are typically told that an arts degree 'does not restrict one's ability to find successful employment in business'.This statement is likely to reflect a philosophy that an arts degree is:

Accepted Answer

A) a signal of high ability 
B) directly linked to accumulation of human capital 
C) an indication of how education can directly enhance marginal productivity 
D) all of the above 
A) a signal of high ability 
B) directly linked to accumulation of human capital 
C) an indication of how education can directly enhance marginal productivity 
D) all of the above

Question 12

In which industries do you think a union negotiated wage rise will have the largest impact on employment?

Accepted Answer

A) industries where the marginal product of labour is increasing 
B) those industries which have a near inelastic demand for labour 
C) those industries in which the equilibrium wage is already very high 
D) industries in which there are many substitutes for labour 
A) industries where the marginal product of labour is increasing 
B) those industries which have a near inelastic demand for labour 
C) those industries in which the equilibrium wage is already very high 
D) industries in which there are many substitutes for labour

Question 13

Explain why miners in Western Australia are the modern versions of Doppelsöldners in Australia today?

Accepted Answer

The mining industry has been undergoing

Question 14

As more and more companies rely on computer databases and less on filing cabinets, which of the following is likely to occur?
(i) the demand for computer programmers will rise
(ii) the demand for filing clerks will fall
(iii) the wage paid to computer clerks will rise

Accepted Answer

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

Question 15

If an employer believes that men are more likely to have a partner at home than women, they would be less risky to hire.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) if the motel job requires some night shift work, wages are likely to be lower than otherwise 
B) if the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise 
C) the job that is likely to be more fun is more likely to have a higher wage 
D) all of the above are true 
A) if the motel job requires some night shift work, wages are likely to be lower than otherwise 
B) if the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise 
C) the job that is likely to be more fun is more likely to have a higher wage 
D) all of the above are true

Question 17

Hardworking employees generally do which of the following?
(i) they earn a higher wage than lazy employees
(ii) they have higher marginal products
(iii) they have more natural beauty

Accepted Answer

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

Question 18

Profit-maximising competitive firms cannot discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets.

Accepted Answer

A) True 
 B)False

Question 19

Refer to the information provided.In a competitive market for piano movers, why might Billy's wage differential persist?

Accepted Answer

A) Billy works harder than the other employees 
B) Billy joins a labour union 
C) Billy's amiable personality allows him to work well with his co-workers 
D) customers do not like Billy because he is overweight 
A) Billy works harder than the other employees 
B) Billy joins a labour union 
C) Billy's amiable personality allows him to work well with his co-workers 
D) customers do not like Billy because he is overweight

Question 20

According to the signaling view of education, a university education enhances productivity.

Accepted Answer

A) True 
 B)False

Exam 20: Earnings, Unions and Discrimination

The declining gender wage gap is best explained by which of the following?

Empirical analysis of wage differences have found evidence:

A likely consequence of implementing comparable worth proposals is that it would lead to:

A binding minimum wage law will decrease the quantity of labour demanded.

All economic explanations of the gender pay gap are associated with discrimination both by consumers and employers, rather than differences in productivity.

For any given level of output, unionisation leads to an increase in the value of the marginal product of labour.

The theory of efficiency wages explains above-equilibrium wages by assuming that workers get a rise in wage when they prove they are increasing their productivity.

A prestigious private high school requires all of its teachers to have a PhD in the subject they teach.This requirement is likely to:

What was the main reason the gender gap did not narrow during the post-war years?

Arts majors are typically told that an arts degree 'does not restrict one's ability to find successful employment in business'.This statement is likely to reflect a philosophy that an arts degree is:

In which industries do you think a union negotiated wage rise will have the largest impact on employment?

Explain why miners in Western Australia are the modern versions of Doppelsöldners in Australia today?

As more and more companies rely on computer databases and less on filing cabinets, which of the following is likely to occur? (i) the demand for computer programmers will rise (ii) the demand for filing clerks will fall (iii) the wage paid to computer clerks will rise

If an employer believes that men are more likely to have a partner at home than women, they would be less risky to hire.

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

Hardworking employees generally do which of the following? (i) they earn a higher wage than lazy employees (ii) they have higher marginal products (iii) they have more natural beauty

Profit-maximising competitive firms cannot discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets.

Refer to the information provided.In a competitive market for piano movers, why might Billy's wage differential persist?

According to the signaling view of education, a university education enhances productivity.

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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