Question 1

What is a natural solution to employer discrimination in market economies

Accepted Answer

A) the threat of judicial review 
B) the profit motive 
C) the political process 
D) the union movement 
A) the threat of judicial review 
B) the profit motive 
C) the political process 
D) the union movement

Question 2

Which idea has challenged the human-capital theory explanation for why people invest in education

Accepted Answer

A) Schooling acts as a signal to future employers of a worker's ability. 
B) Humans cannot be considered capital. 
C) Productivity is not linked to wages. 
D) University is largely a social phenomenon. 
A) Schooling acts as a signal to future employers of a worker's ability. 
B) Humans cannot be considered capital. 
C) Productivity is not linked to wages. 
D) University is largely a social phenomenon.

Question 3

Evaluate the following statement: "The gender pay gap provides evidence of widespread,severe,ongoing discrimination by employers and fellow workers."

Accepted Answer

There are many explanations fo

Question 4

What can we say about the evidence regarding differences in average wages of members of ethnic minority workers compared to white workers in Canada

Accepted Answer

A) The evidence does not alone provide conclusive evidence of discrimination. 
B) The evidence is solely indicative of differences in productivity between ethnicities. 
C) The evidence is seldom used to provide evidence of discriminatory bias. 
D) The evidence provides conclusive evidence of broad patterns of discrimination on the basis of ethnicity. 
A) The evidence does not alone provide conclusive evidence of discrimination. 
B) The evidence is solely indicative of differences in productivity between ethnicities. 
C) The evidence is seldom used to provide evidence of discriminatory bias. 
D) The evidence provides conclusive evidence of broad patterns of discrimination on the basis of ethnicity.

Question 5

What can we say about the earnings gap between workers with high skills and workers with low skills in Canada

Accepted Answer

A) It has not been documented by reliable evidence. 
B) It has remained roughly unchanged over the past 27 years. 
C) It is evident, but it has diminished by 50% over the past 27 years. 
D) It is evident, and it has widened over the past 27 years. 
A) It has not been documented by reliable evidence. 
B) It has remained roughly unchanged over the past 27 years. 
C) It is evident, but it has diminished by 50% over the past 27 years. 
D) It is evident, and it has widened over the past 27 years.

Question 6

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

Accepted Answer

The theory of signalling suggests that t

Question 7

Professors are paid less than doctors and lawyers.What is likely to be a partial explanation

Accepted Answer

A) Teaching jobs are easy. 
B) Professors have less education than doctors and lawyers. 
C) Professors need very little money to live. 
D) The job offers a high element of personal satisfaction. 
A) Teaching jobs are easy. 
B) Professors have less education than doctors and lawyers. 
C) Professors need very little money to live. 
D) The job offers a high element of personal satisfaction.

Question 8

According to the human-capital view,what effect does education have

Accepted Answer

A) It has no effect on lifetime earnings. 
B) It alters work ethic. 
C) It enhances productivity. 
D) It improves social status. 
A) It has no effect on lifetime earnings. 
B) It alters work ethic. 
C) It enhances productivity. 
D) It improves social status.

Question 9

Travis,a university student,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 Greece.Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to Jasper National Park.Travis is carefully considering the options that each recruiter presents.On the basis of knowledge obtained in his economics class,what is Travis likely to conclude

Accepted Answer

A) If the motel job requires some night-shift work, wages are likely to be lower than otherwise. 
B) The job that is likely to be the most fun is more likely to have a higher wage. 
C) If the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise. 
D) The motel job is less pleasant, will attract fewer applicants, and will have a higher wage. 
A) If the motel job requires some night-shift work, wages are likely to be lower than otherwise. 
B) The job that is likely to be the most fun is more likely to have a higher wage. 
C) If the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise. 
D) The motel job is less pleasant, will attract fewer applicants, and will have a higher wage.

Question 10

Which theory explains the fact that some firms may choose to pay their employees more than they would earn as determined by equilibrium in the labour market

Accepted Answer

A) theory of efficiency wages 
B) marginal-productivity theory 
C) human-capital theory 
D) signalling theory 
A) theory of efficiency wages 
B) marginal-productivity theory 
C) human-capital theory 
D) signalling theory

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

According to the signalling theory of education,what is correlated with educational attainment

Accepted Answer

A) marginal productivity 
B) increasing wage gaps 
C) decreasing wage gaps 
D) natural ability 
A) marginal productivity 
B) increasing wage gaps 
C) decreasing wage gaps 
D) natural ability

Question 13

Wage differences that cannot be explained by the number of years of training are likely to be the result of factors associated with which of the following

Accepted Answer

A) demand, but not supply 
B) supply, but not demand 
C) compensating differentials 
D) conditions of regulated markets 
A) demand, but not supply 
B) supply, but not demand 
C) compensating differentials 
D) conditions of regulated markets

Question 14

What can we find in empirical research of wage differentials

Accepted Answer

A) Effort and ability are not likely to contribute to large differences in wages in the Canadian economy. 
B) Economists typically find that measurable factors explain less than half of the variation in wages. 
C) Economists typically find few factors that are not explicitly measurable. 
D) Unmeasurable influences on wage differences are found to be quite small. 
A) Effort and ability are not likely to contribute to large differences in wages in the Canadian economy. 
B) Economists typically find that measurable factors explain less than half of the variation in wages. 
C) Economists typically find few factors that are not explicitly measurable. 
D) Unmeasurable influences on wage differences are found to be quite small.

Question 15

Economists Alan Krueger and Stacy Dale found that earnings of university graduates were mostly unrelated to the toughness of their universities' admissions standards.Which theory will help explain this

Accepted Answer

A) theory of signalling 
B) theory of human capital 
C) theory of superstar phenomenon 
D) theory of compensating differentials 
A) theory of signalling 
B) theory of human capital 
C) theory of superstar phenomenon 
D) theory of compensating differentials

Question 16

How much do we know about the evidence of discrimination in labour markets

Accepted Answer

A) It has been quantified by economists for most races. 
B) It has been conclusively identified as large differences in average wages rates between men and women. 
C) It is difficult to verify by reference to differences in average wage rates. 
D) It is more easily identified on the basis of ethnicity than gender. 
A) It has been quantified by economists for most races. 
B) It has been conclusively identified as large differences in average wages rates between men and women. 
C) It is difficult to verify by reference to differences in average wage rates. 
D) It is more easily identified on the basis of ethnicity than gender.

Question 17

Which finding have economists who study labour markets discovered

Accepted Answer

A) Chance is difficult to measure, but only about five percent of wage differences are related to chance. 
B) Ability is not difficult to measure, but it is largely insignificant in explaining wage differences. 
C) Work effort is difficult to measure, but it is not likely to contribute much to an explanation of wage differences. 
D) Ability, effort, and chance are all likely to be significant contributors to wage differences. 
A) Chance is difficult to measure, but only about five percent of wage differences are related to chance. 
B) Ability is not difficult to measure, but it is largely insignificant in explaining wage differences. 
C) Work effort is difficult to measure, but it is not likely to contribute much to an explanation of wage differences. 
D) Ability, effort, and chance are all likely to be significant contributors to wage differences.

Question 18

The international trade hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the U.S.What does this hypothesis assert happens to the domestic demand for skilled and unskilled labour when international trade expands

Accepted Answer

A) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour also rises. 
B) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour falls. 
C) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour rises. 
D) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour also falls. 
A) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour also rises. 
B) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour falls. 
C) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour rises. 
D) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour also falls.

Question 19

Which statements is NOT used to explain minimum wage

Accepted Answer

A) Some firms pay wages that are above the equilibrium wage. 
B) Workers sometimes form labour unions to push their wages up. 
C) Wages do not deviate from the balance of supply and demand in the market for labour. 
D) The federal government mandates that employers pay their workers at least as much as the minimum wage. 
A) Some firms pay wages that are above the equilibrium wage. 
B) Workers sometimes form labour unions to push their wages up. 
C) Wages do not deviate from the balance of supply and demand in the market for labour. 
D) The federal government mandates that employers pay their workers at least as much as the minimum wage.

Question 20

When differences in human capital among workers lead to discrimination,it is typically a result of social or political processes rather than economic processes.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

What is a natural solution to employer discrimination in market economies

Which idea has challenged the human-capital theory explanation for why people invest in education

Evaluate the following statement: "The gender pay gap provides evidence of widespread,severe,ongoing discrimination by employers and fellow workers."

What can we say about the evidence regarding differences in average wages of members of ethnic minority workers compared to white workers in Canada

What can we say about the earnings gap between workers with high skills and workers with low skills in Canada

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

Professors are paid less than doctors and lawyers.What is likely to be a partial explanation

According to the human-capital view,what effect does education have

Which theory explains the fact that some firms may choose to pay their employees more than they would earn as determined by equilibrium in the labour market

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

According to the signalling theory of education,what is correlated with educational attainment

Wage differences that cannot be explained by the number of years of training are likely to be the result of factors associated with which of the following

What can we find in empirical research of wage differentials

Economists Alan Krueger and Stacy Dale found that earnings of university graduates were mostly unrelated to the toughness of their universities' admissions standards.Which theory will help explain this

How much do we know about the evidence of discrimination in labour markets

Which finding have economists who study labour markets discovered

The international trade hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the U.S.What does this hypothesis assert happens to the domestic demand for skilled and unskilled labour when international trade expands

Which statements is NOT used to explain minimum wage

When differences in human capital among workers lead to discrimination,it is typically a result of social or political processes rather than economic processes.

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

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