Question 1

Other things equal,when will a particular job likely pay a higher wage

Accepted Answer

A) if it involves danger to the worker 
B) if it involves personal enjoyment for the worker 
C) if it involves intellectual stimulation for the worker 
D) if it involves a long commute for the worker 
A) if it involves danger to the worker 
B) if it involves personal enjoyment for the worker 
C) if it involves intellectual stimulation for the worker 
D) if it involves a long commute for the worker

Question 2

Which theory would support the idea that education does NOT enhance productivity and that raising all workers' educational levels would NOT affect wages

Accepted Answer

A) signalling theory 
B) human-capital theory 
C) physical-capital theory 
D) efficient-market hypothesis 
A) signalling theory 
B) human-capital theory 
C) physical-capital theory 
D) efficient-market hypothesis

Question 3

For a "superstar" to emerge,what must be the case

Accepted Answer

A) It is possible to supply the good or service that the superstar produces at low cost to every customer. 
B) Some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar. 
C) The superstar has a natural monopoly on his or her good or service. 
D) The superstar is willing to settle for a level of pay that is less than his or her value of marginal product. 
A) It is possible to supply the good or service that the superstar produces at low cost to every customer. 
B) Some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar. 
C) The superstar has a natural monopoly on his or her good or service. 
D) The superstar is willing to settle for a level of pay that is less than his or her value of marginal product.

Question 4

Scenario 19-3
Ethan works for the local piano moving company part time after school.Ethan has worked on the job for a couple of years but still hasn't received a wage increase even though newer employees have received raises.Ethan has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks.Ethan believes he is a victim of labour-market discrimination.
-Refer to Scenario 19-3.Why might an economist be skeptical of Ethan's discrimination complaint

Accepted Answer

A) Market equilibrium will eliminate discrimination. 
B) In a competitive market, employers pay employees based on their value to the firm. 
C) Only profit maximizers practice discrimination. 
D) Only cost minimizers practice discrimination. 
A) Market equilibrium will eliminate discrimination. 
B) In a competitive market, employers pay employees based on their value to the firm. 
C) Only profit maximizers practice discrimination. 
D) Only cost minimizers practice discrimination.

Question 5

Scenario 19-2
Assume that the labour market for mechanics is competitive and that it is differentiated into two groups: male and female.Assume that the mechanics in this market have vehicle repair ability regardless of whether they are male or female.Currently, the equilibrium wage in the female market is lower than in the male market.Further assume that the market for vehicle repair is competitive.
-Refer to Scenario 19-2.Competition in the market for vehicle repair is consistent with which statement

Accepted Answer

A) Firms hiring male mechanics will have a cost advantage, leading to an increase in the demand for male mechanics. 
B) Firms that hire only female mechanics will eventually all go out of business. 
C) Firms hiring female mechanics will enter the market, increasing the demand for female mechanics. 
D) Firms hiring female mechanics will enter the market, decreasing the demand for female mechanics. 
A) Firms hiring male mechanics will have a cost advantage, leading to an increase in the demand for male mechanics. 
B) Firms that hire only female mechanics will eventually all go out of business. 
C) Firms hiring female mechanics will enter the market, increasing the demand for female mechanics. 
D) Firms hiring female mechanics will enter the market, decreasing the demand for female mechanics.

Question 6

Which statement best describes the relationship between gender wage differentials and education

Accepted Answer

A) Male workers are compensated for attending university, while female workers generally are not. 
B) Female workers are compensated for attending university, while male workers generally are not. 
C) Both genders receive a higher wage as a result of attending university, but male university graduates have a higher wage than female university graduates. 
D) Both genders receive a higher wage as a result of attending university, but female university graduates have a higher wage than male university graduates. 
A) Male workers are compensated for attending university, while female workers generally are not. 
B) Female workers are compensated for attending university, while male workers generally are not. 
C) Both genders receive a higher wage as a result of attending university, but male university graduates have a higher wage than female university graduates. 
D) Both genders receive a higher wage as a result of attending university, but female university graduates have a higher wage than male university graduates.

Question 7

Workers whose skills become obsolete as a result of technological change are often paid a lower wage.What is this a result of

Accepted Answer

A) natural ability 
B) geographic location of employment 
C) chance 
D) work effort 
A) natural ability 
B) geographic location of employment 
C) chance 
D) work effort

Question 8

Describe the role of job experience in explaining the difference between the average wages of men and women.

Accepted Answer

Women who have primary responsibility fo

Question 9

Which argument likely reflects the statement "Night-shift workers make a higher wage than day-shift workers"

Accepted Answer

A) Most people's preference is to work the day shift. 
B) Some people just 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 just 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 10

Which assumption does the theory of efficiency wages challenge

Accepted Answer

A) Workers are efficient. 
B) Workers have an incentive to shirk their responsibilities to their employers. 
C) Wages adjust to balance labour supply and labour demand. 
D) Firms sometimes choose to pay their workers above-equilibrium wages. 
A) Workers are efficient. 
B) Workers have an incentive to shirk their responsibilities to their employers. 
C) Wages adjust to balance labour supply and labour demand. 
D) Firms sometimes choose to pay their workers above-equilibrium wages.

Question 11

What is the primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain

Accepted Answer

A) Architects' services are not as highly valued by society as are the services of athletes and actors. 
B) Only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive. 
C) Government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors. 
D) It is impossible for an architect to supply his or her services at low cost to every customer. 
A) Architects' services are not as highly valued by society as are the services of athletes and actors. 
B) Only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive. 
C) Government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors. 
D) It is impossible for an architect to supply his or her services at low cost to every customer.

Question 12

What is most likely the reason for the difference in wages paid to major-league baseball players and minor-league baseball players

Accepted Answer

A) chance 
B) natural ability 
C) the fact that the major-league players' have better agents 
D) the fact that the minor-league players' union is weak 
A) chance 
B) natural ability 
C) the fact that the major-league players' have better agents 
D) the fact that the minor-league players' union is weak

Question 13

When workers do identical work,but get paid different wages,what is likely to exist

Accepted Answer

A) a compensating differential 
B) an accounting error 
C) no market explanation for the wage difference 
D) differences that are difficult to identify 
A) a compensating differential 
B) an accounting error 
C) no market explanation for the wage difference 
D) differences that are difficult to identify

Question 14

Labour unions will raise the quantity of labour demanded.

Accepted Answer

A) True 
 B)False

Question 15

Why is a plumber unlikely to be as rich as a movie star

Accepted Answer

A) Compensating differential creates a higher wage in the movie business. 
B) There haven't been any decent technological advances in the plumbing industry. 
C) Productivity levels are low in the plumbing industry due to low worker morale. 
D) A plumber can provide his services to only a limited number of customers. 
A) Compensating differential creates a higher wage in the movie business. 
B) There haven't been any decent technological advances in the plumbing industry. 
C) Productivity levels are low in the plumbing industry due to low worker morale. 
D) A plumber can provide his services to only a limited number of customers.

Question 16

Why can some discriminatory hiring practices be expected,even if markets are competitive

Accepted Answer

A) unrestricted entry and exit in markets 
B) lower costs of hiring 
C) a perfectly elastic market demand 
D) customer preferences 
A) unrestricted entry and exit in markets 
B) lower costs of hiring 
C) a perfectly elastic market demand 
D) customer preferences

Question 17

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people.If this effort had no effect on the wages of its workers,one might consider this as evidence in support of which of the following

Accepted Answer

A) the human-capital view of education 
B) the signalling view of education 
C) the compensating-differential theory of education 
D) the natural-ability theory of education 
A) the human-capital view of education 
B) the signalling view of education 
C) the compensating-differential theory of education 
D) the natural-ability theory of education

Question 18

The job of night watchman at the Royal Tyrrell Museum in Drumheller is known to have a high wage.What is likely a partial explanation

Accepted Answer

A) The job is likely to require specialized skills. 
B) The job is likely to be difficult. 
C) The job is likely to be incredibly dull. 
D) The job is likely to provide plenty of time for self-reflection. 
A) The job is likely to require specialized skills. 
B) The job is likely to be difficult. 
C) The job is likely to be incredibly dull. 
D) The job is likely to provide plenty of time for self-reflection.

Question 19

What does evidence suggest about business owners and discrimination

Accepted Answer

A) Business owners are unable to determine the link between discrimination and profitability. 
B) Business owners are interested in profits only when discrimination is illegal. 
C) Business owners are more interested in making a profit than in discriminating against a particular group. 
D) Business owners are more interested in discrimination than in making a profit. 
A) Business owners are unable to determine the link between discrimination and profitability. 
B) Business owners are interested in profits only when discrimination is illegal. 
C) Business owners are more interested in making a profit than in discriminating against a particular group. 
D) Business owners are more interested in discrimination than in making a profit.

Question 20

In the small town of Hubbards,Nova Scotia,there is a local hardware store called Eddy's Hardware.There are only two types of workers who apply for jobs at Eddy's Hardware: fishers and farmers.Numerous complaints have been made that Eddy's Hardware is practicing wage discrimination against fishers.Eddy's Hardware denies the complaint and claims the store is only trying to maximize profit.Which statement would weaken the discrimination complaint against Eddy's Hardware

Accepted Answer

A) Fishers are more productive than farmers. 
B) Fishers work longer hours than farmers and their effort is greater. 
C) Fishers are generally less educated than farmers in the field of hardware. 
D) Fishers only work part time in their offseason. 
A) Fishers are more productive than farmers. 
B) Fishers work longer hours than farmers and their effort is greater. 
C) Fishers are generally less educated than farmers in the field of hardware. 
D) Fishers only work part time in their offseason.

Other things equal,when will a particular job likely pay a higher wage

Which theory would support the idea that education does NOT enhance productivity and that raising all workers' educational levels would NOT affect wages

For a "superstar" to emerge,what must be the case

Which statement best describes the relationship between gender wage differentials and education

Workers whose skills become obsolete as a result of technological change are often paid a lower wage.What is this a result of

Describe the role of job experience in explaining the difference between the average wages of men and women.

Which argument likely reflects the statement "Night-shift workers make a higher wage than day-shift workers"

Which assumption does the theory of efficiency wages challenge

What is the primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain

What is most likely the reason for the difference in wages paid to major-league baseball players and minor-league baseball players

When workers do identical work,but get paid different wages,what is likely to exist

Labour unions will raise the quantity of labour demanded.

Why is a plumber unlikely to be as rich as a movie star

Why can some discriminatory hiring practices be expected,even if markets are competitive

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people.If this effort had no effect on the wages of its workers,one might consider this as evidence in support of which of the following

The job of night watchman at the Royal Tyrrell Museum in Drumheller is known to have a high wage.What is likely a partial explanation

What does evidence suggest about business owners and discrimination

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

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

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Exam 19: Earnings and Discrimination

Other things equal,when will a particular job likely pay a higher wage

Which theory would support the idea that education does NOT enhance productivity and that raising all workers' educational levels would NOT affect wages

For a "superstar" to emerge,what must be the case

Which statement best describes the relationship between gender wage differentials and education

Workers whose skills become obsolete as a result of technological change are often paid a lower wage.What is this a result of

Describe the role of job experience in explaining the difference between the average wages of men and women.

Which argument likely reflects the statement "Night-shift workers make a higher wage than day-shift workers"

Which assumption does the theory of efficiency wages challenge

What is the primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain

What is most likely the reason for the difference in wages paid to major-league baseball players and minor-league baseball players

When workers do identical work,but get paid different wages,what is likely to exist

Labour unions will raise the quantity of labour demanded.

Why is a plumber unlikely to be as rich as a movie star

Why can some discriminatory hiring practices be expected,even if markets are competitive

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people.If this effort had no effect on the wages of its workers,one might consider this as evidence in support of which of the following

The job of night watchman at the Royal Tyrrell Museum in Drumheller is known to have a high wage.What is likely a partial explanation

What does evidence suggest about business owners and discrimination

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

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

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters