Exam 19: Earnings and Discrimination.

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites,it has been said that "the disease is political even if the symptom is economic." What does this mean?

Black men earn an average of 21% less than white men.A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar (i)years of work experience. (ii)years of education. (iii)occupations. (iv)quality of education.

Jane and John are twins who attended grammar school through college together.Jane and John both got jobs at a brokerage firm after graduating from college with the same major.They both work equally hard.Jane earns $43,000 a year,and John earns $69,000 a year.Select the best explanation for this wage difference.

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses.Both hypotheses

Explain how compensating differentials could contribute to differences between the average wages of men and women.

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,we can conclude that it is possible that

Which of the following statements is not correct?

A competitive market may be consistent with a discriminatory wage differential if

According to economic historians,streetcars in southern cities in the early 1900s were racially segregated because the owners of the firms believed that segregation raised the firms' profits.

Over the past several years,the earnings gap between high-skilled and low-skilled workers has (i)narrowed because the demand for unskilled labor has risen over time relative to the demand for skilled labor. (ii)widened because the demand for skilled labor has risen over time relative to the demand for unskilled labor. (iii)narrowed because the supply of unskilled labor has risen over time relative to the supply of skilled labor. (iv)widened because the supply of skilled labor has risen over time relative to the supply of unskilled labor.

On average,truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads.The difference in pay can be attributed to

The theory of efficiency wages suggests that

Which of the following is not an explanation for why better educated workers earn more,on average,than less educated workers?

Which of the following statements is correct?

Scenario 19-4 Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald) and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive. -Refer to Scenario 19-4.If consumers do not discriminate between bald barbers and barbers with hair,then

Bill and Phil are identical twins who attended grammar school through college together.Bill took a job as an engineer who does not have to travel out of the state.Phil took a job as an engineer who must travel out of state once a week.Bill earns $105,000 a year,and Phil earns $185,000 a year.Select the best explanation for this wage difference.

Empirical evidence suggests that ability,effort,and chance are not likely to be significant contributors to wage differences.

Customer discrimination is illegal in the United States.

A signaling theory of education suggests that educational attainment

The profit motive counteracts