Question 1

An effective minimum wage law will increase the quantity of labour demanded.

Accepted Answer

A) True 
 B)False

Question 2

Billy works for the local piano-moving company part-time after school. Billy has worked on the job for a couple of years but still hasn't received a wage rise, even though newer employees have received raises. Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Billy believes he is being severely discriminated against.
Use this information to answer the following question(s).
-Refer to the information provided. Which of the following statements would weaken Billy's case against his employer?

Accepted Answer

A)  the other employees have high-school certificates and Billy does not 
B)  Billy only works part-time and as a result has fewer hours of experience, even though he has been with the business longer 
C)  Billy complains of lower back problems and as a result frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house 
D)  all of the above 
A)  the other employees have high-school certificates and Billy does not 
B)  Billy only works part-time and as a result has fewer hours of experience, even though he has been with the business longer 
C)  Billy complains of lower back problems and as a result frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house 
D)  all of the above

Question 3

What are the peculiar properties on a labour market that are needed to create superstar incomes?

Accepted Answer

Superstars arise in markets that have tw

Question 4

There are relatively few women employed as nuclear physicists. This is possibly evidence of which of the following? (i) labour market discrimination against women
(ii) self-selection of females into other occupations
(iii) cultural bias away from science for girls in primary and secondary education

Accepted Answer

A)  (i) and (ii) only 
B)  (i) and (iii) only 
C)  (ii) and (iii) only 
D)  (i), (ii) and (iii) are all possible explanations 
A)  (i) and (ii) only 
B)  (i) and (iii) only 
C)  (ii) and (iii) only 
D)  (i), (ii) and (iii) are all possible explanations

Question 5

Which of the following statements is false?

Accepted Answer

A)  wages never deviate from the balance of supply and demand in the market for labour 
B)  some wages fall above the equilibrium wage 
C)  workers sometimes form labour unions to push their wages up 
D)  the federal government mandates that employers to pay their workers at least as much as the minimum wage 
A)  wages never deviate from the balance of supply and demand in the market for labour 
B)  some wages fall above the equilibrium wage 
C)  workers sometimes form labour unions to push their wages up 
D)  the federal government mandates that employers to pay their workers at least as much as the minimum wage

Question 6

If an employer believes that men are more likely to have a partner at home than women, they would be less risky to hire.

Accepted Answer

A) True 
 B)False

Question 7

Ferris B, a university student, is trying to consider what he should do for summer employment. Two recruiters show up at his university in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous National Park.
-On the basis of knowledge obtained in his economics class, Ferris is likely to conclude that:

Accepted Answer

A)  if the motel job requires some night shift work, wages are likely to be lower than otherwise 
B)  if the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise 
C)  the job that is likely to be more fun is more likely to have a higher wage 
D)  all of the above are true 
A)  if the motel job requires some night shift work, wages are likely to be lower than otherwise 
B)  if the motel job doesn't require any special skills, the wage offer is likely to be lower than otherwise 
C)  the job that is likely to be more fun is more likely to have a higher wage 
D)  all of the above are true

Question 8

Doppelsöldners were sixteenth century German soldiers that received double pay for fighting in the front of their unit. The likely difference in wages was caused by:

Accepted Answer

A)  doppelsöldners having more expensive uniforms 
B)  an archaic custom with no market explanation 
C)  doppelsöldners belonged to a union and other soldiers did not 
D)  doppelsöldners having a more dangerous job than other soldiers 
A)  doppelsöldners having more expensive uniforms 
B)  an archaic custom with no market explanation 
C)  doppelsöldners belonged to a union and other soldiers did not 
D)  doppelsöldners having a more dangerous job than other soldiers

Question 9

Efficiency wages that create above-equilibrium wages will most likely result in which of the following:

Accepted Answer

A)  a shortage of labour and decreased unemployment of labour 
B)  a shortage of labour and increased unemployment of labour 
C)  a surplus of labour and decreased unemployment of labour 
D)  a surplus of labour and increased unemployment of labour 
A)  a shortage of labour and decreased unemployment of labour 
B)  a shortage of labour and increased unemployment of labour 
C)  a surplus of labour and decreased unemployment of labour 
D)  a surplus of labour and increased unemployment of labour

Question 10

Wage compensation is likely to be a function of which of the following?

Accepted Answer

A)  the job requirements 
B)  the characteristics of workers 
C)  non-monetary attributes of the job undertaken 
D)  all of the above 
A)  the job requirements 
B)  the characteristics of workers 
C)  non-monetary attributes of the job undertaken 
D)  all of the above

Question 11

Which of the following statements represents the idea behind signalling in education?

Accepted Answer

A)  the more naturally productive someone is, the more they are inclined to educate themselves 
B)  education can turn an unproductive person into a productive person 
C)  most university graduates wouldn't be half as productive if it were not for the years they spend in the classroom 
D)  all of the above 
A)  the more naturally productive someone is, the more they are inclined to educate themselves 
B)  education can turn an unproductive person into a productive person 
C)  most university graduates wouldn't be half as productive if it were not for the years they spend in the classroom 
D)  all of the above

Question 12

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 13

Economists who are critical of the notion of comparable worth are likely to argue that:

Accepted Answer

A)  the gender gap in wages is largely associated with discrimination in the labour market 
B)  discrimination engendered by cultural bias is best solved by government intervention 
C)  librarians should not be paid the same wage as an engineer 
D)  the gender gap in wages is reflective of a compensating differential based on allocations in competitive labour markets 
A)  the gender gap in wages is largely associated with discrimination in the labour market 
B)  discrimination engendered by cultural bias is best solved by government intervention 
C)  librarians should not be paid the same wage as an engineer 
D)  the gender gap in wages is reflective of a compensating differential based on allocations in competitive labour markets

Question 14

When workers who work the night shift are paid more than those who do identical work on the day shift, this is referred to as:

Accepted Answer

A)  wage inequity 
B)  inefficient markets 
C)  a compensating differential 
D)  discriminatory wage practice 
A)  wage inequity 
B)  inefficient markets 
C)  a compensating differential 
D)  discriminatory wage practice

Question 15

Economists would argue that the gender wage gap is narrowing because of:

Accepted Answer

A)  comparable worth legislation 
B)  efficiency wages 
C)  decreased productivity among male workers 
D)  increased training among women 
A)  comparable worth legislation 
B)  efficiency wages 
C)  decreased productivity among male workers 
D)  increased training among women

Question 16

Both Lee and John have got a business degree from a university. They both got jobs as research analysts in the same firm. Two years later Lee is earning more money than John. This wage difference is likely caused by:

Accepted Answer

A)  discrimination by the firm 
B)  differences in work experience 
C)  regulations in the labour market 
D)  compensating differentials 
A)  discrimination by the firm 
B)  differences in work experience 
C)  regulations in the labour market 
D)  compensating differentials

Question 17

The competitive labour market for barbers is differentiated into two groups, those 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 non-bald market. Further assume that the market for haircuts is competitive.
-Refer to the information provided. If consumers do not discriminate between bald barbers and barbers with hair, then:

Accepted Answer

A)  wages in the market for barbers can never be in equilibrium 
B)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical 
C)  the equilibrium wage in the 'bald' market will eventually fall 
D)  the equilibrium wage in the 'non-bald' market will eventually rise 
A)  wages in the market for barbers can never be in equilibrium 
B)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical 
C)  the equilibrium wage in the 'bald' market will eventually fall 
D)  the equilibrium wage in the 'non-bald' market will eventually rise

Question 18

In the small town of Hamilton, Tasmania, there is a local hardware store called Eddy's Hardware. Only two types of workers apply for jobs at Eddy's Hardware, cowboys and farmboys. Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against cowboys. Eddy's Hardware denies the complaint and says they are only trying to maximise profit. There is also a second hardware store in town, named Frank's Hardware, which, unlike Eddy's Hardware, is not facing discriminatory complaints.
-Which of the following statements would weaken the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)  cowboys are more productive than farm boys 
B)  cowboys are generally less educated in the field of hardware 
C)  cowboys are hard workers 
D)  all of the above 
A)  cowboys are more productive than farm boys 
B)  cowboys are generally less educated in the field of hardware 
C)  cowboys are hard workers 
D)  all of the above

Question 19

Business owners who care only about making money are:

Accepted Answer

A)  likely to discriminate against certain groups of workers 
B)  likely to not discriminate against certain groups of workers 
C)  likely to be replaced by discriminating businesses 
D)  very interested in the colour of their employees' skin 
A)  likely to discriminate against certain groups of workers 
B)  likely to not discriminate against certain groups of workers 
C)  likely to be replaced by discriminating businesses 
D)  very interested in the colour of their employees' skin

Question 20

Explain the role consumers play in perpetuating discrimination in labour markets.

Accepted Answer

Consumers are able to exercise their bia

Exam 20: Earnings, Unions and Discrimination

An effective minimum wage law will increase the quantity of labour demanded.

What are the peculiar properties on a labour market that are needed to create superstar incomes?

There are relatively few women employed as nuclear physicists. This is possibly evidence of which of the following? (i) labour market discrimination against women (ii) self-selection of females into other occupations (iii) cultural bias away from science for girls in primary and secondary education

Which of the following statements is false?

If an employer believes that men are more likely to have a partner at home than women, they would be less risky to hire.

Doppelsöldners were sixteenth century German soldiers that received double pay for fighting in the front of their unit. The likely difference in wages was caused by:

Efficiency wages that create above-equilibrium wages will most likely result in which of the following:

Wage compensation is likely to be a function of which of the following?

Which of the following statements represents the idea behind signalling in education?

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

Economists who are critical of the notion of comparable worth are likely to argue that:

When workers who work the night shift are paid more than those who do identical work on the day shift, this is referred to as:

Economists would argue that the gender wage gap is narrowing because of:

Both Lee and John have got a business degree from a university. They both got jobs as research analysts in the same firm. Two years later Lee is earning more money than John. This wage difference is likely caused by:

Business owners who care only about making money are:

Explain the role consumers play in perpetuating discrimination in labour markets.

Ten Lessons From 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

Business Strategy

Competition Policy

Monopolistic Competition

The Markets for the Factors of Production

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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