Exam 19: Earnings and Discrimination

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?

A competitive market may be consistent with a discriminatory wage differential if

Differences in human capital are likely to

The organized withdrawal of labor from a firm by a union is called

Discrimination is an emotionally charged issue that is impossible to study objectively.

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 consumers do not discriminate between bald barbers and barbers with hair,then

As a result of an increase in the earnings gap between skilled and unskilled jobs,the incentive to get a college education has been declining.

Figure 19-3 The manufacturing labor market. -Refer to Figure 19-3.Suppose the manufacturing labor market,which is non-unionized,is in equilibrium at a wage equal to $30.Suppose now that the AFL-CIO (a labor organization)organizes the workers in the manufacturing market and negotiates a wage of $38 per hour.Because of the union,

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

As more companies rely on computer databases and less on filing cabinets,the (i) demand for computer programmers will rise. (ii) wage paid to filing clerks will rise. (iii) wage paid to computer programmers will rise.

Which of the following statements is correct?

Patrick is considering two different jobs in the same city - one as a bicycle courier and the other as a mail room clerk.Both require equivalent training.He finds neither job very appealing,but,if they pay the same wage rate,Patrick would prefer to work as a mail room clerk.In order for Patrick to find the two jobs equally attractive,the

Philip is the best contractor in town,and he earns $400,000 a year.Billy is an average contractor in town,and he earns $80,000 a year.Philip's contracting services

Which of the following theories explains why increased education translates into higher wages? (i) human-capital theory (ii) the theory of compensating differentials (iii) signaling theory

Offering different opportunities to similar individuals who differ only by race,ethnic group,sex,age,or other personal characteristics is called

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.This can be partially explained by the fact that

Coal mining is a dangerous and dirty job.Suppose someone developed new machinery that made coal mining safer and cleaner;at the same time,it made coal miners more productive.We would expect that the wages of coal miners would

Which of the following statements is correct? (i) Since the 1940s,the number of American workers employed in the manufacturing sector has declined from 30 percent to 10 percent. (ii) Since 1910,the number of Americans working as farmers has declined from 33 percent to 3 percent. (iii) Since 1995,global industrial output has fallen by more than 30 percent. (iv) Productivity increases are one reason for the declining number of manufacturing jobs.

Which of the following is not a consequence of above-equilibrium wages in a labor market?

When two workers work for the same company but get paid different wages,there is likely to be a