Exam 19: Earnings and Discrimination

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of car,while black passengers sat in the back.The firms that ran the streetcars were

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

Evidence suggests that business owners are generally

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

Suppose that Philip is the best contractor in town,and he makes $400,000 a year.Suppose that Julia Roberts is the best and highest paid actress in Hollywood,and she makes $13 million per movie.Both are the best in their respective fields of work.One reason for the significant difference in incomes has to do with the nature of the service each offers.Philip's contracting services

Which of the following factors affects the marginal productivity of a worker?

First grade teachers who work in Lynn,Massachusetts (a large,low income city north of Boston)public schools earn more than first grade teachers who work in private schools in more affluent communities north of Boston.Lynn teachers belong to a teachers' union.Which statement best explains the scenario described above?

Which of the following statements correctly identifies the shift in employment in the manufacturing sector in the United States?

Jill is the best eye surgeon in town,and she earns $350,000 a year.Susan is an average eye surgeon in town,and she earns $100,000 a year.Jill's skills as a surgeon

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Scenario 19-4 Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers 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 nonbald market.Further assume that the market for haircuts is competitive. -Refer to Scenario 19-4.Competition in the market for haircuts is consistent with which of the following statements?

When discrimination occurs as a result of prejudice,firms do not maximize profits.

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Which of the following comparisons best illustrates a compensating differential?

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Scenario 19-3 In the small town of Hamilton,Montana,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: cowboys and farm boys.Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against cowboys.Eddy's Hardware denies the complaint and says the store is only trying to maximize profit. -Refer to Scenario 19-3.Which of the following statements would weaken the discrimination complaint against Eddy's Hardware?

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

Public school teachers are known to have low wages.This is probably because

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg.After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers,they found that

Which of the following would be considered an investment in human capital?