Exam 19: Earnings and Discrimination.

Scenario 19-5 Billy works for the local piano moving company part-time after school. Billy has worked for the company for two years but still hasn't received a wage increase, even though newer employees have received raises. Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Billy believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5.Why might an economist be skeptical of Billy's discrimination complaint?

Which of the following is not an example of efficiency wages?

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Profit-maximizing,competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

If firms are competitive,then labor-market discrimination

If an employer's behavior is supportive of the theory of efficiency wages,the employer would

In recent years,the amount of international trade in which the United States engages has

Studies of discrimination in baseball suggest that black players

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Bill and Ted went to trade school at the same time.Each graduated with an associate's degree.They have received similar performance evaluations.Bill's employer is not a good business manager,and the bookkeeper embezzled money from the company.Because of the loss of funds,the employees did not receive raises last year.Ted's employer is a savvy business manager.If Ted has higher earnings than Bill,the difference is most likely a function of

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed.A firm offers a higher salary to worker A than worker B because worker A

Which of the following is an economic explanation for the "beauty premium"?

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

According to proponents of the signaling theory of education,an increase in the education levels of all workers would

Which of the following statements is not correct?

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

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

The term "compensating differential" refers to

A union's major source of power is its