Exam 19: Earnings and Discrimination.

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Suppose that Philip is the best contractor in town,and he makes $400,000 a year.Suppose that Julia Roberts is the best and highest paid actress in Hollywood,and she makes $13 million per movie.Both are the best in their respective fields of work.One reason for the significant difference in incomes has to do with the nature of the service each offers.Philip's contracting services

When comparing average wages for black and white men in the United States,wages paid to black men have been about 20 percent less than those paid to white men.

Other things equal,when the supply of workers is low,one would predict that market wages would be

Which of the following does not explain the "beauty premium" differences in wages?

Which of the following statements does not accurately describe the market for labor?

Above-equilibrium wages caused by efficiency wages will most likely result in

Which of the following represents an example of labor-market discrimination?

The time spent by students in college

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Daryn and Nick work for two different companies,but each performs the same job working on a loading dock.Daryn,however,earns a higher salary than his friend Nick The difference in salary could illustrate union wages if Daryn's annual salary is covered by a collective bargaining agreement and Nick's is not.

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

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 some consumers in the market for haircuts have a strong preference for having their hair cut by a barber who is not going bald,then

Bob,the manager and owner of a small company,believes in the theory of efficiency wages.As such,Bob would be most likely to agree with which of the following quotes?

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Assuming that all other things are equal,including the wage,which of the following statements is correct?

By definition,there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

The most popular movie stars have high incomes for a number of reasons.One such reason is

The statement that "the rich get richer,and the poor get poorer" is supported by evidence of an expanding wage gap between high-skill and low-skill workers.