Question 1

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Accepted Answer

A) some of the wage gap is explained by efficiency wages. 
B) differences in years of work experience likely lead to productivity differences between men and women. 
C) compensating differentials usually lead to higher wages for women. 
D) All of the above are correct. 
A) some of the wage gap is explained by efficiency wages. 
B) differences in years of work experience likely lead to productivity differences between men and women. 
C) compensating differentials usually lead to higher wages for women. 
D) All of the above are correct.

Question 2

Human capital

Accepted Answer

A) represents the accumulation of investments in people, such as education and on-the-job training. 
B) represents the types of capital built by people rather than by machines. 
C) is less important to the economy's production than physical capital. 
D) Both a and b are correct. 
A) represents the accumulation of investments in people, such as education and on-the-job training. 
B) represents the types of capital built by people rather than by machines. 
C) is less important to the economy's production than physical capital. 
D) Both a and b are correct.

Question 3

Why would a wage differential due to discrimination be unlikely to persist in a competitive labor market? (i)	Workers who are victims of discrimination will eventually drop out of the labor market.
(ii)	Competing firms will hire more of the workers who are temporarily victimized by discrimination.
(iii)	There is a cost advantage for firms that do not discriminate.

Accepted Answer

A) (i) and (ii) 
B) (ii) and (iii) 
C) (i) and (iii) 
D) (i), (ii), and (iii) 
A) (i) and (ii) 
B) (ii) and (iii) 
C) (i) and (iii) 
D) (i), (ii), and (iii)

Question 4

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 5

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) All of the above are correct. 
A) high-school teacher 
B) anchorperson for a national news program 
C) heart surgeon 
D) All of the above are correct.

Question 6

A college degree makes a person more productive according to

Accepted Answer

A) both the human-capital and the signaling theories of education. 
B) the human-capital but not the signaling theory of education. 
C) the signaling but not the human-capital theory of education. 
D) neither the human-capital nor the signaling theory of education. 
A) both the human-capital and the signaling theories of education. 
B) the human-capital but not the signaling theory of education. 
C) the signaling but not the human-capital theory of education. 
D) neither the human-capital nor the signaling theory of education.

Question 7

A study conducted by economists Alan Krueger and Stacy Dale concluded that

Accepted Answer

A) earnings of college graduates were mostly unrelated to the toughness of their colleges' admissions standards. 
B) students from low-income families had little or nothing to gain by being admitted to a college that has tough admissions standards. 
C) earnings of college graduates were only slightly higher than earnings of high school graduates. 
D) people who attended colleges where sports are important have higher incomes than people who attended colleges where sports are not important. 
A) earnings of college graduates were mostly unrelated to the toughness of their colleges' admissions standards. 
B) students from low-income families had little or nothing to gain by being admitted to a college that has tough admissions standards. 
C) earnings of college graduates were only slightly higher than earnings of high school graduates. 
D) people who attended colleges where sports are important have higher incomes than people who attended colleges where sports are not important.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A difference in wages that reflects differences in the nonpay features of two jobs is called

Accepted Answer

A) a compensating differential. 
B) a wage adjustment. 
C) an efficiency wage. 
D) a minimum wage. 
A) a compensating differential. 
B) a wage adjustment. 
C) an efficiency wage. 
D) a minimum wage.

Question 10

Kim is a black 21-year-old female,and Jackie is a black 41-year-old female.Both Kim and Jackie are finance majors,and they graduated from the same college with the same GPA - Kim in 2003 and Jackie in 1983.Kim and Jackie are both financial advisers at the same mutual fund firm.Kim earns $45,000 a year,and Jackie earns $90,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A) Kim has more human capital relative to Jackie. 
B) Kim has less human capital relative to Jackie. 
C) Kim has been discriminated against because she is young. 
D) Jackie has been discriminated against because she is old. 
A) Kim has more human capital relative to Jackie. 
B) Kim has less human capital relative to Jackie. 
C) Kim has been discriminated against because she is young. 
D) Jackie has been discriminated against because she is old.

Question 11

Labor-market discrimination is evident when

Accepted Answer

A) wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity. 
B) wage rates differ for similar jobs. 
C) consumers prefer to shop at some stores, and not at others. 
D) All of the above are correct. 
A) wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity. 
B) wage rates differ for similar jobs. 
C) consumers prefer to shop at some stores, and not at others. 
D) All of the above are correct.

Question 12

Mary and Ashley are identical twins who attended grammar school through high school together.Mary got a job after high school,and Ashley got a job after graduating from college.Mary earns $36,000 a year,and Ashley earns $69,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A) Ashley has more human capital relative to Mary. 
B) Mary has more human capital relative to Ashley. 
C) Mary has received a compensating differential 
D) Ashley has received a compensating differential. 
A) Ashley has more human capital relative to Mary. 
B) Mary has more human capital relative to Ashley. 
C) Mary has received a compensating differential 
D) Ashley has received a compensating differential.

Question 13

Efficiency wages will raise the quantity of labor supplied to the market.

Accepted Answer

A) True 
 B)False

Question 14

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The idea of paying workers an efficiency wage is that

Accepted Answer

A) doing so is more efficient than paying them the market wage. 
B) paying workers less gives them the incentive to work harder. 
C) workers and management gain at the expense of the stockholders of the company. 
D) workers have the incentive to work harder, thus increasing their marginal productivity. 
A) doing so is more efficient than paying them the market wage. 
B) paying workers less gives them the incentive to work harder. 
C) workers and management gain at the expense of the stockholders of the company. 
D) workers have the incentive to work harder, thus increasing their marginal productivity.

Question 17

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

Accepted Answer

A) True 
 B)False

Question 18

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

Accepted Answer

A) level of education. 
B) attitude toward the tradeoff between labor and leisure. 
C) gender. 
D) All of the above are correct. 
A) level of education. 
B) attitude toward the tradeoff between labor and leisure. 
C) gender. 
D) All of the above are correct.

Question 19

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

Accepted Answer

A) True 
 B)False

Question 20

The statement that "public school teachers are paid less than engineers despite having similar amounts of education" is likely to reflect market conditions such that

Accepted Answer

A) engineering classes are universally less difficult than are education classes at the university. 
B) engineers have lower intrinsic job satisfaction than public school teachers. 
C) wage discrimination is more likely in markets for public school teachers. 
D) there is no compensating wage differential that applies to public school teachers. 
A) engineering classes are universally less difficult than are education classes at the university. 
B) engineers have lower intrinsic job satisfaction than public school teachers. 
C) wage discrimination is more likely in markets for public school teachers. 
D) there is no compensating wage differential that applies to public school teachers.

Exam 19: Earnings and Discrimination

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Human capital

Evidence of differences in average wages of women compared to men

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

A college degree makes a person more productive according to

A study conducted by economists Alan Krueger and Stacy Dale concluded that

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

A difference in wages that reflects differences in the nonpay features of two jobs is called

Labor-market discrimination is evident when

Mary and Ashley are identical twins who attended grammar school through high school together.Mary got a job after high school,and Ashley got a job after graduating from college.Mary earns $36,000 a year,and Ashley earns $69,000 a year.Select the best explanation for this wage difference.

Efficiency wages will raise the quantity of labor supplied to the market.

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

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

The idea of paying workers an efficiency wage is that

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

The statement that "public school teachers are paid less than engineers despite having similar amounts of education" is likely to reflect market conditions such that

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Applications

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

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters