Question 1

A worker association that bargains with employers over wages and working conditions is called

Accepted Answer

A)  a strike. 
B)  an oligopoly. 
C)  a firm. 
D)  a union. 
A)  a strike. 
B)  an oligopoly. 
C)  a firm. 
D)  a union.

Question 2

Suppose that an employer can hire workers with brown hair and workers with blonde hair.Each type of worker has the same productivity.Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Accepted Answer

A)  The employer will be just as efficient as a nondiscriminating employer. 
B)  The employer will face higher costs than firms that focus only on maximizing profits. 
C)  The employer will immediately go out of business because discrimination is illegal. 
D)  The employer will face union strikes. 
A)  The employer will be just as efficient as a nondiscriminating employer. 
B)  The employer will face higher costs than firms that focus only on maximizing profits. 
C)  The employer will immediately go out of business because discrimination is illegal. 
D)  The employer will face union strikes.

Question 3

Experimental evidence indicates women choose less competitive environments than men.

Accepted Answer

A) True 
 B)False

Question 4

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

Accepted Answer

A)  architects' services are not as highly valued by society as are the services of athletes and actors. 
B)  only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive. 
C)  government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors. 
D)  it is impossible, currently, for an architect to supply his or her services at low cost to every customer. 
A)  architects' services are not as highly valued by society as are the services of athletes and actors. 
B)  only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive. 
C)  government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors. 
D)  it is impossible, currently, for an architect to supply his or her services at low cost to every customer.

Question 5

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Accepted Answer

A) True 
 B)False

Question 6

Most economists believe that the higher average salaries earned by men in comparison to women arise from

Accepted Answer

A)  discrimination. 
B)  a variety of factors, including differences in human capital and compensating differentials; few economists believe that gender discrimination in earnings exists. 
C)  differences in human capital as the primary reason. 
D)  a variety of factors, including differences in human capital, compensating differentials, and discrimination. 
A)  discrimination. 
B)  a variety of factors, including differences in human capital and compensating differentials; few economists believe that gender discrimination in earnings exists. 
C)  differences in human capital as the primary reason. 
D)  a variety of factors, including differences in human capital, compensating differentials, and discrimination.

Question 7

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

Accepted Answer

A)  both skilled and unskilled labor will rise proportionately. 
B)  skilled labor will fall and the demand for unskilled labor will rise. 
C)  skilled labor will rise and the demand for unskilled labor will fall. 
D)  both skilled and unskilled labor will be unaffected, assuming no barriers to free trade. 
A)  both skilled and unskilled labor will rise proportionately. 
B)  skilled labor will fall and the demand for unskilled labor will rise. 
C)  skilled labor will rise and the demand for unskilled labor will fall. 
D)  both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.

Question 8

The human capital theory explanation for why people invest in education has been challenged by a theory that suggests

Accepted Answer

A)  schooling acts only as a signal of ability. 
B)  humans cannot be considered "capital." 
C)  productivity is not linked to wages. 
D)  college is largely a social phenomenon. 
A)  schooling acts only as a signal of ability. 
B)  humans cannot be considered "capital." 
C)  productivity is not linked to wages. 
D)  college is largely a social phenomenon.

Question 9

Which of the following statements is not correct?

Accepted Answer

A)  Competitive markets tend to limit the impact of discrimination on wages. 
B)  Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination. 
C)  Some differences in earnings are attributable to discrimination based on race, sex, or other factors. 
D)  Profit-maximizing behavior can reduce discriminatory wage differentials. 
A)  Competitive markets tend to limit the impact of discrimination on wages. 
B)  Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination. 
C)  Some differences in earnings are attributable to discrimination based on race, sex, or other factors. 
D)  Profit-maximizing behavior can reduce discriminatory wage differentials.

Question 10

Which of the following is the most important contributor to human capital?

Accepted Answer

A)  education 
B)  effort 
C)  chance 
D)  physical strength 
A)  education 
B)  effort 
C)  chance 
D)  physical strength

Question 11

A 1986 study of segregation on early 20th century U.S.streetcars found that the primary source of racial segregation on streetcars was

Accepted Answer

A)  a longstanding tradition of racial segregation. 
B)  policies implemented by the owners of streetcars. 
C)  laws passed by the government. 
D)  threats by white people to boycott the streetcars if they were forced to sit with black people. 
A)  a longstanding tradition of racial segregation. 
B)  policies implemented by the owners of streetcars. 
C)  laws passed by the government. 
D)  threats by white people to boycott the streetcars if they were forced to sit with black people.

Question 12

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Accepted Answer

A) True 
 B)False

Question 13

According to the signaling theory of education,

Accepted Answer

A)  schooling sends signals to employers in much the same way that advertising sends signals to consumers. 
B)  a person becomes more productive by earning a college degree. 
C)  education is less important than natural ability. 
D)  All of the above are correct. 
A)  schooling sends signals to employers in much the same way that advertising sends signals to consumers. 
B)  a person becomes more productive by earning a college degree. 
C)  education is less important than natural ability. 
D)  All of the above are correct.

Question 14

In empirical analyses of factors that help explain wages,

Accepted Answer

A)  effort and ability are not likely to contribute to large differences in wages in the U.S. economy. 
B)  economists typically find that measurable factors explain less than half of the variation in wages. 
C)  economists typically find few factors that are not explicitly measurable. 
D)  unmeasurable influences on wage differences are found to be quite small. 
A)  effort and ability are not likely to contribute to large differences in wages in the U.S. economy. 
B)  economists typically find that measurable factors explain less than half of the variation in wages. 
C)  economists typically find few factors that are not explicitly measurable. 
D)  unmeasurable influences on wage differences are found to be quite small.

Question 15

Over the past 30 years,the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S.As a result,the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing.

Accepted Answer

A) True 
 B)False

Question 16

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Accepted Answer

A)  men were better at adding than women. 
B)  women chose the tournament payoff scheme more than men. 
C)  men thought they won the four-player tournament part of the experiment more often than women thought they won the four-player tournament. 
D)  the researchers demonstrated that women face significant wage discrimination in stock brokerages. 
A)  men were better at adding than women. 
B)  women chose the tournament payoff scheme more than men. 
C)  men thought they won the four-player tournament part of the experiment more often than women thought they won the four-player tournament. 
D)  the researchers demonstrated that women face significant wage discrimination in stock brokerages.

Question 17

The "superstar" phenomenon can apply to which of these jobs?

Accepted Answer

A)  high-school teacher 
B)  anchorperson for a national news program 
C)  heart surgeon 
D)  carpenter. 
A)  high-school teacher 
B)  anchorperson for a national news program 
C)  heart surgeon 
D)  carpenter.

Question 18

If an employer pays a man a higher wage than a woman,the employer

Accepted Answer

A)  is discriminating against the woman but is still maximizing profit. 
B)  is not discriminating against the woman. 
C)  may or may not be discriminating against the woman. 
D)  is discriminating against the woman and is not maximizing profit. 
A)  is discriminating against the woman but is still maximizing profit. 
B)  is not discriminating against the woman. 
C)  may or may not be discriminating against the woman. 
D)  is discriminating against the woman and is not maximizing profit.

Question 19

If employers are profit-maximizers,then

Accepted Answer

A)  competition will always eventually eliminate employment discrimination. 
B)  employment discrimination may persist if consumers discriminate. 
C)  employment discrimination will persist because it is always profitable. 
D)  compensating differentials cannot exist. 
A)  competition will always eventually eliminate employment discrimination. 
B)  employment discrimination may persist if consumers discriminate. 
C)  employment discrimination will persist because it is always profitable. 
D)  compensating differentials cannot exist.

Question 20

The fact that doctors are paid more than economics professors is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination.

A worker association that bargains with employers over wages and working conditions is called

Suppose that an employer can hire workers with brown hair and workers with blonde hair.Each type of worker has the same productivity.Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Experimental evidence indicates women choose less competitive environments than men.

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Most economists believe that the higher average salaries earned by men in comparison to women arise from

If unskilled labor is relatively plentiful and cheap in many foreign countries,then as the United States expands its trade with these foreign countries,the domestic demand for

The human capital theory explanation for why people invest in education has been challenged by a theory that suggests

Which of the following statements is not correct?

Which of the following is the most important contributor to human capital?

A 1986 study of segregation on early 20th century U.S.streetcars found that the primary source of racial segregation on streetcars was

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

According to the signaling theory of education,

In empirical analyses of factors that help explain wages,

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

The "superstar" phenomenon can apply to which of these jobs?

If an employer pays a man a higher wage than a woman,the employer

If employers are profit-maximizers,then

The fact that doctors are paid more than economics professors is an example of a compensating differential.

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.

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