Question 1

Which scenario would serve to decrease the demand for unskilled labour in Canada

Accepted Answer

A) increased productivity gains among the unskilled labourers 
B) increased demand for goods produced by unskilled labour 
C) increased international trade with countries where unskilled labour is more plentiful 
D) increased supply of migrant workers 
A) increased productivity gains among the unskilled labourers 
B) increased demand for goods produced by unskilled labour 
C) increased international trade with countries where unskilled labour is more plentiful 
D) increased supply of migrant workers

Question 2

When an employer pays the cost of educating a worker,what motivation is most likely

Accepted Answer

A) He is demonstrating altruistic motives. 
B) He is pursuing some objective other than profit maximization. 
C) He hopes to recapture his investment in the form of increased labour productivity. 
D) He receives reimbursement from the government for the cost of the education. 
A) He is demonstrating altruistic motives. 
B) He is pursuing some objective other than profit maximization. 
C) He hopes to recapture his investment in the form of increased labour productivity. 
D) He receives reimbursement from the government for the cost of the education.

Question 3

If there is systematic discrimination against a group of workers,then as a result,what will the wage paid to those workers likely be

Accepted Answer

A) lower, due to a higher supply of workers in that group 
B) lower, due to a lower demand for workers in that group 
C) higher, due to a lower supply of workers in that group 
D) higher, due to a higher demand for workers in that group 
A) lower, due to a higher supply of workers in that group 
B) lower, due to a lower demand for workers in that group 
C) higher, due to a lower supply of workers in that group 
D) higher, due to a higher demand for workers in that group

Question 4

Discrimination is a reflection of some people's prejudice against certain groups in society.

Accepted Answer

A) True 
 B)False

Question 5

Does it matter if the main source of discrimination is employers, co-workers, or customers?

Accepted Answer

Yes,it does,and the latter is the most d

Question 6

Which factor would economists argue is narrowing the gender wage gap

Accepted Answer

A) decreased productivity among male workers 
B) increased training among women 
C) efficiency wages 
D) federal laws that were passed in the 1970s 
A) decreased productivity among male workers 
B) increased training among women 
C) efficiency wages 
D) federal laws that were passed in the 1970s

Question 7

The fact that doctors are paid more than professors is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 8

Scenario 19-1
Ferris, a student at a community university, 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 local 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,what is Ferris likely to conclude

Accepted Answer

A) The lifeguard job is likely to be more fun than the summer camp job, so the wage for that job is likely to be higher than otherwise. 
B) If the summer camp job doesn't require any special skills, the wage for that job is likely to be lower than otherwise. 
C) Because the summer camp job requires some night-shift work, the wage for that job is likely to be lower than otherwise. 
D) The lifeguard job is likely to offer good social opportunities, so the wage for that job is likely to be lower than otherwise. 
A) The lifeguard job is likely to be more fun than the summer camp job, so the wage for that job is likely to be higher than otherwise. 
B) If the summer camp job doesn't require any special skills, the wage for that job is likely to be lower than otherwise. 
C) Because the summer camp job requires some night-shift work, the wage for that job is likely to be lower than otherwise. 
D) The lifeguard job is likely to offer good social opportunities, so the wage for that job is likely to be lower than otherwise.

Question 9

The neoclassical theory of the labour market suggests that wages are governed by labour supply and labour demand.

Accepted Answer

A) True 
 B)False

Question 10

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.What is likely to be a partial explanation

Accepted Answer

A) Plumbers who work with sewer lines require years of specialized training. 
B) Plumbing jobs that involve sewer lines are likely to have an element of personal satisfaction. 
C) Plumbers who work with sewer lines are more likely to work a standard shift. 
D) Plumbers who work with sewer lines are likely to be perceived as having a "dirty" job. 
A) Plumbers who work with sewer lines require years of specialized training. 
B) Plumbing jobs that involve sewer lines are likely to have an element of personal satisfaction. 
C) Plumbers who work with sewer lines are more likely to work a standard shift. 
D) Plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.

Question 11

Profit-maximizing competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets.

Accepted Answer

A) True 
 B)False

Question 12

Which argument likely reflects the statement "Professors are paid less than lawyers and doctors,but have similar amounts of education"

Accepted Answer

A) Education is not likely to be related to compensation. 
B) Professors are affected by a compensating wage differential. 
C) The jobs of doctors and lawyers provide more job satisfaction than the jobs of professors. 
D) Professors must receive an equivalent wage differential. 
A) Education is not likely to be related to compensation. 
B) Professors are affected by a compensating wage differential. 
C) The jobs of doctors and lawyers provide more job satisfaction than the jobs of professors. 
D) Professors must receive an equivalent wage differential.

Question 13

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 14

The technology 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 emphasize as the likely effect of technological advances

Accepted Answer

A) They have increased the supply of skilled workers and increased the supply of unskilled workers. 
B) They have increased the supply of skilled workers and decreased the supply of unskilled workers. 
C) They have increased the demand for skilled workers and decreased the demand for unskilled workers. 
D) They have decreased the demand for skilled workers and decreased the demand for unskilled workers. 
A) They have increased the supply of skilled workers and increased the supply of unskilled workers. 
B) They have increased the supply of skilled workers and decreased the supply of unskilled workers. 
C) They have increased the demand for skilled workers and decreased the demand for unskilled workers. 
D) They have decreased the demand for skilled workers and decreased the demand for unskilled workers.

Question 15

When workers who work the night shift are paid more than those who do identical work on the day shift,how is this characterized

Accepted Answer

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

Question 16

What have studies shown about the earnings of nonunion workers

Accepted Answer

A) They earn about 30 to 40 percent less than union workers. 
B) They earn about 10 to 20 percent less than union workers. 
C) They earn about 10 to 20 percent more than union workers. 
D) They earn about 30 to 40 percent more than union workers. 
A) They earn about 30 to 40 percent less than union workers. 
B) They earn about 10 to 20 percent less than union workers. 
C) They earn about 10 to 20 percent more than union workers. 
D) They earn about 30 to 40 percent more than union workers.

Question 17

Store clerks are known to have low wages.What is likely to be a partial explanation

Accepted Answer

A) Store clerk jobs are perceived to be relatively easy. 
B) Store clerk jobs are perceived to be relatively difficult. 
C) Many people perceive the job of store clerk as having an element of personal satisfaction. 
D) Store clerk positions are part-time jobs. 
A) Store clerk jobs are perceived to be relatively easy. 
B) Store clerk jobs are perceived to be relatively difficult. 
C) Many people perceive the job of store clerk as having an element of personal satisfaction. 
D) Store clerk positions are part-time jobs.

Question 18

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

Accepted Answer

A) True 
 B)False

Question 19

What does the theory of efficiency wages suggest

Accepted Answer

A) Unions are successful in forcing employers to pay higher wages. 
B) Employers strive to hold wages below equilibrium levels. 
C) Employers find it profitable to pay above-equilibrium wages. 
D) Efficient workers actually earn lower wages than those earned by inefficient workers. 
A) Unions are successful in forcing employers to pay higher wages. 
B) Employers strive to hold wages below equilibrium levels. 
C) Employers find it profitable to pay above-equilibrium wages. 
D) Efficient workers actually earn lower wages than those earned by inefficient workers.

Question 20

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Which scenario would serve to decrease the demand for unskilled labour in Canada

When an employer pays the cost of educating a worker,what motivation is most likely

If there is systematic discrimination against a group of workers,then as a result,what will the wage paid to those workers likely be

Discrimination is a reflection of some people's prejudice against certain groups in society.

Does it matter if the main source of discrimination is employers, co-workers, or customers?

Which factor would economists argue is narrowing the gender wage gap

The fact that doctors are paid more than professors is an example of a compensating differential.

The neoclassical theory of the labour market suggests that wages are governed by labour supply and labour demand.

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.What is likely to be a partial explanation

Profit-maximizing competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets.

Which argument likely reflects the statement "Professors are paid less than lawyers and doctors,but have similar amounts of education"

Evidence of discrimination is most apparent when one compares wages among broad groups.

The technology 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 emphasize as the likely effect of technological advances

When workers who work the night shift are paid more than those who do identical work on the day shift,how is this characterized

What have studies shown about the earnings of nonunion workers

Store clerks are known to have low wages.What is likely to be a partial explanation

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

What does the theory of efficiency wages suggest

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

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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