Exam 19: Earnings and Discrimination

Scenario 19-1 Ferris B. ,a student at a community college,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 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,Ferris concludes that

In the United States,the earnings gap between workers with college degrees and workers with high school degrees

Karen is a black 21-year-old female,and Jessica is a black 41-year-old female.Both Karen and Jessica are accounting majors,and they graduated from the same college with the same GPA - Karen in 2008 and Jessica in 1988.Karen and Jessica are both financial advisers at the same mutual fund firm.Karen earns $45,000 a year,and Jessica earns $90,000 a year.Select the best explanation for this wage difference.

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s)on labor demanded by firms in the United States?

Which of the following statements is correct?

The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Which of the following statements is correct?

Evidence of discrimination in labor markets

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

The belief that education makes a person more productive and thereby raises his or her wage is referred to as the

Figure 19-1 -Refer to Figure 19-1.What is the loss associated with wages moving from $8 to $10?

Studies of discrimination in baseball suggest that black players

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

The fact that movie star Julia Roberts' salary is much higher than the salary earned by a Nobel prize winning economics professor can best be explained by the

Which of the following is not a consequence of above-equilibrium wages in a labor market?

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years.As a result of this investment,economists who adhere to the human capital view of education would predict

Efficiency wages decrease employee turnover.

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

One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence.

Jane and John are twins who attended grammar school through college together.Jane and John both got jobs at a brokerage firm after graduating from college with the same major.They both work equally hard.Jane earns $43,000 a year,and John earns $69,000 a year.Select the best explanation for this wage difference.