Question 1

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

Question 2

Economists have proposed which of the following hypotheses to explain the rising wage gap between skilled and unskilled workers?

Accepted Answer

A)  Increases in the role of unions in negotiating wages. 
B)  Declines in the amount of international trade. 
C)  There is no rising wage gap. 
D)  Technological change. 
A)  Increases in the role of unions in negotiating wages. 
B)  Declines in the amount of international trade. 
C)  There is no rising wage gap. 
D)  Technological change.

Question 3

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however,economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following factors does not affect the value of a worker's marginal product?

Accepted Answer

A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials 
A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials

Question 5

Sometimes wages are set above the equilibrium level when firms pay

Accepted Answer

A)  workers with more seniority higher wages than newly-hired workers. 
B)  efficiency wages to reduce turnover. 
C)  compensating differentials to workers who work the night shift. 
D)  more attractive salespeople higher wages than less attractive salespeople. 
A)  workers with more seniority higher wages than newly-hired workers. 
B)  efficiency wages to reduce turnover. 
C)  compensating differentials to workers who work the night shift. 
D)  more attractive salespeople higher wages than less attractive salespeople.

Question 6

Evidence of differences in average wages of women compared to men

Accepted Answer

A)  clearly illustrates differences in productivity between genders. 
B)  provides conclusive evidence of discrimination on the basis of gender. 
C)  is seldom used to provide evidence of discriminatory bias. 
D)  does not provide conclusive evidence of discrimination. 
A)  clearly illustrates differences in productivity between genders. 
B)  provides conclusive evidence of discrimination on the basis of gender. 
C)  is seldom used to provide evidence of discriminatory bias. 
D)  does not provide conclusive evidence of discrimination.

Question 7

John is an Asian 23-year-old male,and Ken is an Asian 43-year-old male.Both John and Ken are economics majors,and they graduated from the same college with the same GPA - John in 2006 and Ken in 1986.John and Ken are both financial advisers at the same brokerage firm.John earns $52,000 a year,and Ken earns $88,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)  John has more human capital than Ken. 
B)  John has less human capital than Ken. 
C)  John has been discriminated against because he is young. 
D)  Ken has been discriminated against because he is old. 
A)  John has more human capital than Ken. 
B)  John has less human capital than Ken. 
C)  John has been discriminated against because he is young. 
D)  Ken has been discriminated against because he is old.

Question 8

The accumulation of investments in people,such as education and on-the-job training,is known as

Accepted Answer

A)  physical capital. 
B)  human capital. 
C)  efficiency wage. 
D)  a union. 
A)  physical capital. 
B)  human capital. 
C)  efficiency wage. 
D)  a union.

Question 9

The characteristics of jobs and workers affect

Accepted Answer

A)  labor supply. 
B)  labor demand. 
C)  equilibrium wages. 
D)  All of the above are correct. 
A)  labor supply. 
B)  labor demand. 
C)  equilibrium wages. 
D)  All of the above are correct.

Question 10

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling,years of experience,age and job characteristics only explained about one-half of the difference in wages.Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may include job

Question 11

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Accepted Answer

A)  risen as the demand for skilled labor has increased relative to the demand for unskilled labor. 
B)  risen as the demand for skilled labor has decreased relative to the demand for unskilled labor. 
C)  fallen as the demand for skilled labor has increased relative to the demand for unskilled labor. 
D)  fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor. 
A)  risen as the demand for skilled labor has increased relative to the demand for unskilled labor. 
B)  risen as the demand for skilled labor has decreased relative to the demand for unskilled labor. 
C)  fallen as the demand for skilled labor has increased relative to the demand for unskilled labor. 
D)  fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.

Question 12

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Accepted Answer

A)  discriminatory rules established by the government 
B)  compensating wage differentials for living in Europe 
C)  discriminatory preferences on the part of US sports fans for other sports 
D)  efficiency wages paid to European players to enhance on-field performance 
A)  discriminatory rules established by the government 
B)  compensating wage differentials for living in Europe 
C)  discriminatory preferences on the part of US sports fans for other sports 
D)  efficiency wages paid to European players to enhance on-field performance

Question 13

Which of the following helps to explain the differences in earnings in the United States?

Accepted Answer

A)  ability, effort, and chance 
B)  compensating differentials 
C)  physical attractiveness 
D)  All of the above are correct. 
A)  ability, effort, and chance 
B)  compensating differentials 
C)  physical attractiveness 
D)  All of the above are correct.

Question 14

Differences in human capital among workers can often be attributed to social or political processes rather than economic processes.

Accepted Answer

A) True 
 B)False

Question 15

Scenario 19-1
Ferris B., a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for lifeguards to patrol the beach at an exclusive island resort in the Caribbean. Recruiter B is looking for workers to staff positions at a summer youth camp.
-Refer to Scenario 19-1.Ferris is carefully considering the options that each recruiter presents.On the basis of knowledge obtained in his economics class,Ferris concludes that

Accepted Answer

A)  the lifeguard job will be more fun than the summer camp job, so the wage for that job will be higher than otherwise. 
B)  if the summer camp job doesn't require any special skills, the wage for that job will be lower than otherwise. 
C)  since the summer camp job requires some night shift work, the wage for that job will be lower than otherwise. 
D)  All of the above are correct. 
A)  the lifeguard job will be more fun than the summer camp job, so the wage for that job will be higher than otherwise. 
B)  if the summer camp job doesn't require any special skills, the wage for that job will be lower than otherwise. 
C)  since the summer camp job requires some night shift work, the wage for that job will be lower than otherwise. 
D)  All of the above are correct.

Question 16

When the supply of workers is plentiful,one would predict that market wages would be

Accepted Answer

A)  determined outside the domain of economic theory. 
B)  determined solely by factors that affect demand. 
C)  low, other things equal. 
D)  high, other things equal. 
A)  determined outside the domain of economic theory. 
B)  determined solely by factors that affect demand. 
C)  low, other things equal. 
D)  high, other things equal.

Question 17

The signaling theory of education suggests that when people earn a college degree they do not become more productive,but they do signal their high ability to prospective employers.

Accepted Answer

A) True 
 B)False

Question 18

According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Accepted Answer

A)  an electrician 
B)  a hair stylist 
C)  a journalist 
D)  a roofer 
A)  an electrician 
B)  a hair stylist 
C)  a journalist 
D)  a roofer

Question 19

Wage differences that can't be explained by the number of years of training could result from

Accepted Answer

A)  demand but not supply. 
B)  supply but not demand. 
C)  compensating differentials. 
D)  the marginal product of capital. 
A)  demand but not supply. 
B)  supply but not demand. 
C)  compensating differentials. 
D)  the marginal product of capital.

Question 20

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Accepted Answer

A)  discrimination based on race 
B)  discrimination in sports 
C)  consumer discrimination 
D)  discrimination based on educational attainment 
A)  discrimination based on race 
B)  discrimination in sports 
C)  consumer discrimination 
D)  discrimination based on educational attainment

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

Economists have proposed which of the following hypotheses to explain the rising wage gap between skilled and unskilled workers?

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however,economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Which of the following factors does not affect the value of a worker's marginal product?

Sometimes wages are set above the equilibrium level when firms pay

Evidence of differences in average wages of women compared to men

The accumulation of investments in people,such as education and on-the-job training,is known as

The characteristics of jobs and workers affect

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Which of the following helps to explain the differences in earnings in the United States?

Differences in human capital among workers can often be attributed to social or political processes rather than economic processes.

When the supply of workers is plentiful,one would predict that market wages would be

The signaling theory of education suggests that when people earn a college degree they do not become more productive,but they do signal their high ability to prospective employers.

According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Wage differences that can't be explained by the number of years of training could result from

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Ten Principles of 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.

Oligopoly.

The Market For the Factors of Production.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters

Exam 19: Earnings and Discrimination.

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

Economists have proposed which of the following hypotheses to explain the rising wage gap between skilled and unskilled workers?

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however,economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Which of the following factors does not affect the value of a worker's marginal product?

Sometimes wages are set above the equilibrium level when firms pay

Evidence of differences in average wages of women compared to men

The accumulation of investments in people,such as education and on-the-job training,is known as

The characteristics of jobs and workers affect

In recent years,the ratio of earnings of the typical U.S.college graduate to the earnings of the typical high school graduate without additional education has

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Which of the following helps to explain the differences in earnings in the United States?

Differences in human capital among workers can often be attributed to social or political processes rather than economic processes.

When the supply of workers is plentiful,one would predict that market wages would be

The signaling theory of education suggests that when people earn a college degree they do not become more productive,but they do signal their high ability to prospective employers.

According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Wage differences that can't be explained by the number of years of training could result from

When firms focus on profit maximization,which form of wage discrimination is least likely to occur?

Ten Principles of 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.

Oligopoly.

The Market For the Factors of Production.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters