Question 1

Since 1995,global manufacturing employment has declined,yet global industrial output has risen.

Accepted Answer

A) True 
 B)False

Question 2

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Accepted Answer

A) most people's preference is to work the day shift. 
B) some people prefer to work a night shift for nonmonetary reasons. 
C) night shift jobs are generally more technically difficult. 
D) more women than men work the night shift. 
A) most people's preference is to work the day shift. 
B) some people prefer to work a night shift for nonmonetary reasons. 
C) night shift jobs are generally more technically difficult. 
D) more women than men work the night shift.

Question 3

Business firms that pay salespeople a percentage of the sales they make are attempting to reward

Accepted Answer

A) work effort. 
B) loyalty to the firm. 
C) years of schooling. 
D) years of experience. 
A) work effort. 
B) loyalty to the firm. 
C) years of schooling. 
D) years of experience.

Question 4

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Accepted Answer

A) racial discrimination by firms, despite government efforts to halt it. 
B) racial discrimination by firms with no government action either to halt it or to support it. 
C) government-mandated racial discrimination. 
D) a failure to find any discrimination where most would expect to find it. 
A) racial discrimination by firms, despite government efforts to halt it. 
B) racial discrimination by firms with no government action either to halt it or to support it. 
C) government-mandated racial discrimination. 
D) a failure to find any discrimination where most would expect to find it.

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

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) wages are unlikely to be affected by job requirements. 
B) since the lifeguard job would expose him to a threat of skin cancer, the wage will be low. 
C) if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise. 
D) if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise. 
A) wages are unlikely to be affected by job requirements. 
B) since the lifeguard job would expose him to a threat of skin cancer, the wage will be low. 
C) if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise. 
D) if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise.

Question 7

Which of the following is an example of discrimination in the labor market?

Accepted Answer

A) Women earn less than men because women are more likely to be employed in occupations that pay less, such as elementary school teachers rather than electrical engineers. 
B) Women earn less than men because women have, on average, fewer years of experience in the labor force because women, on average, periodically leave the labor force to raise children. 
C) A pharmaceutical sales company pays women less than men because the company's customers, physicians and pharmacists, say that they prefer to deal with men rather than women. 
D) All of the above are correct. 
A) Women earn less than men because women are more likely to be employed in occupations that pay less, such as elementary school teachers rather than electrical engineers. 
B) Women earn less than men because women have, on average, fewer years of experience in the labor force because women, on average, periodically leave the labor force to raise children. 
C) A pharmaceutical sales company pays women less than men because the company's customers, physicians and pharmacists, say that they prefer to deal with men rather than women. 
D) All of the above are correct.

Question 8

Which of the following statements is not correct?

Accepted Answer

A) The U.S.is experiencing an increase in the types of jobs where workers identify and solve new problems.The wages for these jobs are also rising. 
B) The U.S.is experiencing an increase in personal service jobs.The wages for these jobs are also rising. 
C) Technological advancements have replaced many routine jobs such as bank tellers and telephone operators. 
D) Manufacturing employment has decreased world-wide. 
A) The U.S.is experiencing an increase in the types of jobs where workers identify and solve new problems.The wages for these jobs are also rising. 
B) The U.S.is experiencing an increase in personal service jobs.The wages for these jobs are also rising. 
C) Technological advancements have replaced many routine jobs such as bank tellers and telephone operators. 
D) Manufacturing employment has decreased world-wide.

Question 9

Which of the following explains the "beauty premium" differences in wages?

Accepted Answer

A) People who spend time on their personal appearance may send a signal that they are more productive workers. 
B) Personal appearance and intelligence are inversely related. 
C) The "superstar phenomenon" explains the "beauty premium." 
D) Better-looking people are more efficient; thus, they are paid an efficiency wage. 
A) People who spend time on their personal appearance may send a signal that they are more productive workers. 
B) Personal appearance and intelligence are inversely related. 
C) The "superstar phenomenon" explains the "beauty premium." 
D) Better-looking people are more efficient; thus, they are paid an efficiency wage.

Question 10

In a recent U.S.presidential campaign,a lobbyist for a prominent national women's organization made the claim that women in the United States earn $0.60 for every $1.00 earned by a man.A reporter,who was prepared for this statement,asked the lobbyist why wages paid to the organization's secretarial staff (all of whom were women)were significantly below the national average if they were truly interested in raising the rates of compensation for women.If you were the lobbyist,how would you have answered this question? Do you think your answer is convincing? Explain.

Accepted Answer

The lobbyist would likely respond by cit

Question 11

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Accepted Answer

A) laws that required such segregation. 
B) long-standing southern traditions about which the law was silent. 
C) streetcar firms trying to maximize profits. 
D) streetcar firms trying to minimize costs. 
A) laws that required such segregation. 
B) long-standing southern traditions about which the law was silent. 
C) streetcar firms trying to maximize profits. 
D) streetcar firms trying to minimize costs.

Question 12

When employers sort employment applications into high-ability and low-ability people based on the attainment of a college degree (irrespective of major),they are providing evidence in support of the

Accepted Answer

A) human-capital theory of education. 
B) signaling theory of education. 
C) principle that education enhances marginal productivity. 
D) principle that most business owners are more interested in discriminating against a particular group than in maximizing profits. 
A) human-capital theory of education. 
B) signaling theory of education. 
C) principle that education enhances marginal productivity. 
D) principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.

Question 13

The return to investment in human capital is observed

Accepted Answer

A) only when workers are assigned identical tasks. 
B) in the wage differential between workers. 
C) in the high school dropout rate in inner-city urban school districts. 
D) in the low wages of educated factory workers. 
A) only when workers are assigned identical tasks. 
B) in the wage differential between workers. 
C) in the high school dropout rate in inner-city urban school districts. 
D) in the low wages of educated factory workers.

Question 14

When computers are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Accepted Answer

A) will increase only if the company can increase the price of its product. 
B) is likely to increase. 
C) is likely to decrease. 
D) will not change. 
A) will increase only if the company can increase the price of its product. 
B) is likely to increase. 
C) is likely to decrease. 
D) will not change.

Question 15

Labor unions will raise the quantity of labor demanded.

Accepted Answer

A) True 
 B)False

Question 16

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Accepted Answer

A) True 
 B)False

Question 17

Workers who work the night shift are often paid more than those who do identical work on the day shift.This is referred to as a

Accepted Answer

A) discriminatory wage practice. 
B) compensating differential. 
C) wage inequity. 
D) a market inefficiency. 
A) discriminatory wage practice. 
B) compensating differential. 
C) wage inequity. 
D) a market inefficiency.

Question 18

Scenario 19-2
Travis, 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 workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park.
-Refer to Scenario 19-2.Travis is carefully considering the options that each recruiter presents.On the basis of knowledge obtained in his economics class,Travis concludes that

Accepted Answer

A) if the motel job requires some night shift work, wages will be lower than otherwise. 
B) the job that is more fun will have a higher wage. 
C) if the motel job doesn't require any special skills, the wage offer will be lower than otherwise. 
D) All of the above are correct. 
A) if the motel job requires some night shift work, wages will be lower than otherwise. 
B) the job that is more fun will have a higher wage. 
C) if the motel job doesn't require any special skills, the wage offer will be lower than otherwise. 
D) All of the above are correct.

Question 19

The statement that "professors are paid less than lawyers despite having similar amounts of education" is likely to reflect market conditions such that

Accepted Answer

A) education is not likely to be related to compensation. 
B) professors receive lower wages because other aspects of their jobs are more pleasant. 
C) the jobs of doctors and lawyers provide more job satisfaction than the jobs of professors. 
D) All of the above are correct. 
A) education is not likely to be related to compensation. 
B) professors receive lower wages because other aspects of their jobs are more pleasant. 
C) the jobs of doctors and lawyers provide more job satisfaction than the jobs of professors. 
D) All of the above are correct.

Question 20

The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Since 1995,global manufacturing employment has declined,yet global industrial output has risen.

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Business firms that pay salespeople a percentage of the sales they make are attempting to reward

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

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.

Which of the following is an example of discrimination in the labor market?

Which of the following statements is not correct?

Which of the following explains the "beauty premium" differences in wages?

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

When employers sort employment applications into high-ability and low-ability people based on the attainment of a college degree (irrespective of major),they are providing evidence in support of the

The return to investment in human capital is observed

When computers are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Labor unions will raise the quantity of labor demanded.

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Workers who work the night shift are often paid more than those who do identical work on the day shift.This is referred to as a

The statement that "professors are paid less than lawyers despite having similar amounts of education" is likely to reflect market conditions such that

The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

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

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