Question 1

If customers are racist but employers are not,then employment discrimination will be

Accepted Answer

A) less profitable than nondiscrimination. 
B) more profitable than nondiscrimination. 
C) equally profitable as nondiscrimination. 
D) easier to eliminate than if employers were racist but customers were not. 
A) less profitable than nondiscrimination. 
B) more profitable than nondiscrimination. 
C) equally profitable as nondiscrimination. 
D) easier to eliminate than if employers were racist but customers were not.

Question 2

An example of a non-pecuniary job characteristic is

Accepted Answer

A) over-time pay. 
B) salary. 
C) an end-of-the-year bonus. 
D) a comfortable work environment. 
A) over-time pay. 
B) salary. 
C) an end-of-the-year bonus. 
D) a comfortable work environment.

Question 3

If a firm refuses to hire any minorities due to a personal prejudice,its profits

Accepted Answer

A) will increase markedly. 
B) will decrease. 
C) will not be affected. 
D) will increase slightly. 
A) will increase markedly. 
B) will decrease. 
C) will not be affected. 
D) will increase slightly.

Question 4

Occupations X and Y employ persons with the same productivity.Workers in the two occupations work the same number of hours per day when on the job.Employment is stable throughout the year in X,while Y is characterized by seasonal layoffs.How will the hourly wage rate and annual earnings compare in the two occupations?

Accepted Answer

A) The hourly wage rate will be higher in X,but the annual earnings will be higher for Y. 
B) Both the hourly wage rate and annual earnings will be higher in X. 
C) Both the hourly wage rate and annual earnings will be higher in Y. 
D) The hourly wage rate will be higher in Y,but the annual earnings will likely be higher for X. 
A) The hourly wage rate will be higher in X,but the annual earnings will be higher for Y. 
B) Both the hourly wage rate and annual earnings will be higher in X. 
C) Both the hourly wage rate and annual earnings will be higher in Y. 
D) The hourly wage rate will be higher in Y,but the annual earnings will likely be higher for X.

Question 5

If there is employment discrimination against minorities,this will cause the

Accepted Answer

A) supply of their services to increase,and their wages to fall. 
B) demand for their services to decline,and their wages to fall. 
C) supply of their services to decline,and their wages to rise. 
D) demand for their services to decline,and their wages to rise. 
A) supply of their services to increase,and their wages to fall. 
B) demand for their services to decline,and their wages to fall. 
C) supply of their services to decline,and their wages to rise. 
D) demand for their services to decline,and their wages to rise.

Question 6

Two workers are employed in the same job by the same firm;however,they are paid different wage rates.This could be explained by differences in

Accepted Answer

A) the income effect 
B) the price of the firm's output 
C) their marginal products due to differences in ability 
D) working conditions 
E) risk 
A) the income effect 
B) the price of the firm's output 
C) their marginal products due to differences in ability 
D) working conditions 
E) risk

Question 7

When employment discrimination results from the personal prejudices of employers,economic theory suggests that

Accepted Answer

A) it is costless for employers to discriminate against groups they do not like. 
B) the wages of employees who are discriminated against will actually rise. 
C) an employer who discriminates will experience higher costs. 
D) discrimination by an employer will reduce production costs since the employer can pay lower wages. 
A) it is costless for employers to discriminate against groups they do not like. 
B) the wages of employees who are discriminated against will actually rise. 
C) an employer who discriminates will experience higher costs. 
D) discrimination by an employer will reduce production costs since the employer can pay lower wages.

Question 8

The major determinant of an individual's income is

Accepted Answer

A) whether or not his family is wealthy. 
B) his personality-if the coworkers and the boss like him. 
C) how productive he is combined with demand for what he produces. 
D) if he earns a salary or if he is paid by the hour. 
A) whether or not his family is wealthy. 
B) his personality-if the coworkers and the boss like him. 
C) how productive he is combined with demand for what he produces. 
D) if he earns a salary or if he is paid by the hour.

Question 9

In a market economy,which of the following is most important if one is going to achieve high earnings?

Accepted Answer

A) willingness to do hard physical work. 
B) providing goods and/or services that others value highly. 
C) performing an important social function,like teaching. 
D) having a membership in a labor union. 
A) willingness to do hard physical work. 
B) providing goods and/or services that others value highly. 
C) performing an important social function,like teaching. 
D) having a membership in a labor union.

Question 10

Automated production methods are only attractive when they

Accepted Answer

A) reduce labor productivity. 
B) replace workers. 
C) decrease per-unit costs of production. 
D) lower wages. 
A) reduce labor productivity. 
B) replace workers. 
C) decrease per-unit costs of production. 
D) lower wages.

Question 11

Which of the following is most likely to increase the market wage rate in a job category?

Accepted Answer

A) The employer provides a generous pension plan. 
B) The work is widely viewed as safe and not stressful. 
C) The job is widely viewed as interesting and prestigious. 
D) The job requires employees to move from city to city quite often. 
A) The employer provides a generous pension plan. 
B) The work is widely viewed as safe and not stressful. 
C) The job is widely viewed as interesting and prestigious. 
D) The job requires employees to move from city to city quite often.

Question 12

Low-skill workers earn a lower wage than more experienced,higher skilled workers because the

Accepted Answer

A) low-skill workers lack the intelligence necessary to do any other form of work. 
B) low-skill workers were never given the opportunity to invest in human capital. 
C) supply of low-skill workers is large relative to the demand for workers in this skill category. 
D) low-skill workers are too lazy to search for other employment opportunities. 
A) low-skill workers lack the intelligence necessary to do any other form of work. 
B) low-skill workers were never given the opportunity to invest in human capital. 
C) supply of low-skill workers is large relative to the demand for workers in this skill category. 
D) low-skill workers are too lazy to search for other employment opportunities.

Question 13

In a market economy,which of the following is most important if one is going to achieve high earnings?

Accepted Answer

A) hard work 
B) provision of goods and/or services that others value highly 
C) having a graduate degree in a field like history or sociology 
D) membership in a labor union 
A) hard work 
B) provision of goods and/or services that others value highly 
C) having a graduate degree in a field like history or sociology 
D) membership in a labor union

Question 14

Within an occupation,when a given job provides steadier work (fewer layoffs),the hourly wage tends to be

Accepted Answer

A) lower than wage rates in jobs that are otherwise similar. 
B) higher than wage rates in jobs that are otherwise similar. 
C) no different from wage rates in jobs that are otherwise similar. 
D) determined by factors other than supply and demand. 
A) lower than wage rates in jobs that are otherwise similar. 
B) higher than wage rates in jobs that are otherwise similar. 
C) no different from wage rates in jobs that are otherwise similar. 
D) determined by factors other than supply and demand.

Question 15

Which of the following is the primary source of cross-country differences in the real earnings of workers?

Accepted Answer

A) differences in natural resource endowments 
B) differences in output per worker 
C) differences in the average number of hours worked 
D) differences in the share of workers that are members of a labor union 
E) access to modern technology 
A) differences in natural resource endowments 
B) differences in output per worker 
C) differences in the average number of hours worked 
D) differences in the share of workers that are members of a labor union 
E) access to modern technology

Question 16

Business owners who care only about maximizing profits are

Accepted Answer

A) likely to discriminate against certain groups of workers. 
B) likely to be replaced by discriminating businesses. 
C) more concerned about racial discrimination than gender discrimination. 
D) at an advantage when competing against those who practice employment discrimination. 
A) likely to discriminate against certain groups of workers. 
B) likely to be replaced by discriminating businesses. 
C) more concerned about racial discrimination than gender discrimination. 
D) at an advantage when competing against those who practice employment discrimination.

Question 17

Economic theory suggests that the standard of living of American workers would fall if the

Accepted Answer

A) knowledge and skills of workers improved,reducing the need for workers. 
B) United States had more natural resources. 
C) United States turned to more automated methods of production. 
D) productivity of American workers declined. 
A) knowledge and skills of workers improved,reducing the need for workers. 
B) United States had more natural resources. 
C) United States turned to more automated methods of production. 
D) productivity of American workers declined.

Question 18

Firms will only adopt more automated methods of production when

Accepted Answer

A) they reduce the need for workers. 
B) they lower production costs. 
C) they lengthen the production process. 
D) other firms in the industry are doing it. 
A) they reduce the need for workers. 
B) they lower production costs. 
C) they lengthen the production process. 
D) other firms in the industry are doing it.

Question 19

Which of the following best states the relationship between machinery and the earnings of labor?

Accepted Answer

A) Machines tend to reduce the demand for labor,thereby reducing the earnings rate of labor. 
B) Production of machinery creates jobs,thereby increasing the demand for (and wages of)labor. 
C) High productivity per worker hour is a necessary ingredient for the attainment of high real earnings,and adoption of labor-saving machinery enhances the ability of labor to attain such high productivity. 
D) Output and real earnings can always be increased whenever a machine can be substituted for a function previously performed by labor. 
A) Machines tend to reduce the demand for labor,thereby reducing the earnings rate of labor. 
B) Production of machinery creates jobs,thereby increasing the demand for (and wages of)labor. 
C) High productivity per worker hour is a necessary ingredient for the attainment of high real earnings,and adoption of labor-saving machinery enhances the ability of labor to attain such high productivity. 
D) Output and real earnings can always be increased whenever a machine can be substituted for a function previously performed by labor.

Question 20

Technological progress generally has the effect of

Accepted Answer

A) creating permanently higher levels of unemployment. 
B) freeing resources that can now go to other uses. 
C) lowering the national standard of living. 
D) doing all of the above. 
A) creating permanently higher levels of unemployment. 
B) freeing resources that can now go to other uses. 
C) lowering the national standard of living. 
D) doing all of the above.

Exam 26: Earnings, productivity, and the Job Market

If customers are racist but employers are not,then employment discrimination will be

An example of a non-pecuniary job characteristic is

If a firm refuses to hire any minorities due to a personal prejudice,its profits

If there is employment discrimination against minorities,this will cause the

Two workers are employed in the same job by the same firm;however,they are paid different wage rates.This could be explained by differences in

When employment discrimination results from the personal prejudices of employers,economic theory suggests that

The major determinant of an individual's income is

In a market economy,which of the following is most important if one is going to achieve high earnings?

Automated production methods are only attractive when they

Which of the following is most likely to increase the market wage rate in a job category?

Low-skill workers earn a lower wage than more experienced,higher skilled workers because the

In a market economy,which of the following is most important if one is going to achieve high earnings?

Within an occupation,when a given job provides steadier work (fewer layoffs),the hourly wage tends to be

Which of the following is the primary source of cross-country differences in the real earnings of workers?

Business owners who care only about maximizing profits are

Economic theory suggests that the standard of living of American workers would fall if the

Firms will only adopt more automated methods of production when

Which of the following best states the relationship between machinery and the earnings of labor?

Technological progress generally has the effect of

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Economic Fluctuations, unemployment, and Inflation

Aan Introduction to Basic Macroeconomic Markets

Dynamic Change, economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, output, and Employment

Creating an Environment for Growth and Prosperity

Institutions,policies,and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

The Economics of Healthcare

Education: Problems and Performance

Earnings Differences Between Men and Women

Do Labor Unions Increase the Wages of Workers

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

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