Question 1

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A)  Restaurant customers preferred to be waited on by white waitresses than by black waitresses. 
B)  Black basketball players earned more than white basketball players. 
C)  Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal. 
D)  Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa. 
A)  Restaurant customers preferred to be waited on by white waitresses than by black waitresses. 
B)  Black basketball players earned more than white basketball players. 
C)  Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal. 
D)  Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.

Question 2

The time spent by students in college

Accepted Answer

A)  leads to lower lifetime earnings because opportunity costs are high. 
B)  is an investment in human capital. 
C)  decreases human capital by lowering work experience. 
D)  increases as the wages paid to low-skilled workers rise. 
A)  leads to lower lifetime earnings because opportunity costs are high. 
B)  is an investment in human capital. 
C)  decreases human capital by lowering work experience. 
D)  increases as the wages paid to low-skilled workers rise.

Question 3

Which of the following variables related to a worker's wage are the most difficult to measure?

Accepted Answer

A)  ability,effort,and chance 
B)  job characteristics,gender,and race 
C)  gender,race,and geographic location 
D)  years of schooling,age,and years of experience 
A)  ability,effort,and chance 
B)  job characteristics,gender,and race 
C)  gender,race,and geographic location 
D)  years of schooling,age,and years of experience

Question 4

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Accepted Answer

A)  to reduce employee turnover. 
B)  to prevent unions from recruiting members. 
C)  to reduce the need for minimum wage laws. 
D)  to increase the demand for better-skilled workers. 
A)  to reduce employee turnover. 
B)  to prevent unions from recruiting members. 
C)  to reduce the need for minimum wage laws. 
D)  to increase the demand for better-skilled workers.

Question 5

Many kindergarten teachers have advanced educational degrees,yet they have lower average earnings that other individuals with similar educational levels.A potential explanation for the differences in earnings is that kindergarten teachers

Accepted Answer

A)  have more pleasant working conditions. 
B)  have less pleasant working conditions. 
C)  work longer hours. 
D)  must pass certification tests. 
A)  have more pleasant working conditions. 
B)  have less pleasant working conditions. 
C)  work longer hours. 
D)  must pass certification tests.

Question 6

The accumulation of investments in people,such as education and on the job training,is known as

Accepted Answer

A)  physical capital. 
B)  human capital. 
C)  efficiency wage. 
D)  a union. 
A)  physical capital. 
B)  human capital. 
C)  efficiency wage. 
D)  a union.

Question 7

For a "superstar" to emerge,it must be the case that

Accepted Answer

A)  it is possible to supply the good or service that the superstar produces at low cost to every customer. 
B)  some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar. 
C)  the superstar has a natural monopoly on his or her good or service. 
D)  the superstar is willing to settle for a level of pay that is less than the value of his marginal product. 
A)  it is possible to supply the good or service that the superstar produces at low cost to every customer. 
B)  some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar. 
C)  the superstar has a natural monopoly on his or her good or service. 
D)  the superstar is willing to settle for a level of pay that is less than the value of his marginal product.

Question 8

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Accepted Answer

A)  discrimination against people from the west exists. 
B)  people from the east receive compensating differentials. 
C)  people from the west have lower levels of human capital. 
D)  All of the above could be correct. 
A)  discrimination against people from the west exists. 
B)  people from the east receive compensating differentials. 
C)  people from the west have lower levels of human capital. 
D)  All of the above could be correct.

Question 9

Which of the following is true of minimum-wage laws?

Accepted Answer

A)  They affect skilled workers' wages. 
B)  They create above-equilibrium wages for some unskilled workers. 
C)  They create a shortage of unskilled labor. 
D)  They negatively affect the employment of skilled workers. 
A)  They affect skilled workers' wages. 
B)  They create above-equilibrium wages for some unskilled workers. 
C)  They create a shortage of unskilled labor. 
D)  They negatively affect the employment of skilled workers.

Question 10

Expenditures on human capital

Accepted Answer

A)  reflect an expectation of some future return on the investment. 
B)  are generally embodied in a specific individual. 
C)  reflect an investment of resources today to raise productivity in the future. 
D)  All of the above are correct. 
A)  reflect an expectation of some future return on the investment. 
B)  are generally embodied in a specific individual. 
C)  reflect an investment of resources today to raise productivity in the future. 
D)  All of the above are correct.

Question 11

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Accepted Answer

A) True 
 B)False

Question 12

A difference in wages between a highly-educated worker and a less-educated worker is

Accepted Answer

A)  a compensating differential for the cost of becoming educated. 
B)  a signal that the market is indifferent to a worker's level of human capital. 
C)  considered unfair by economists. 
D)  considered unfair by everyone. 
A)  a compensating differential for the cost of becoming educated. 
B)  a signal that the market is indifferent to a worker's level of human capital. 
C)  considered unfair by economists. 
D)  considered unfair by everyone.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Accepted Answer

A) True 
 B)False

Question 15

Other things equal,a particular job will likely pay a higher wage if it involves

Accepted Answer

A)  danger to the worker. 
B)  personal enjoyment for the worker. 
C)  intellectual stimulation for the worker. 
D)  All of the above are correct. 
A)  danger to the worker. 
B)  personal enjoyment for the worker. 
C)  intellectual stimulation for the worker. 
D)  All of the above are correct.

Exam 19: Earnings and Discrimination

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

The time spent by students in college

Which of the following variables related to a worker's wage are the most difficult to measure?

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Many kindergarten teachers have advanced educational degrees,yet they have lower average earnings that other individuals with similar educational levels.A potential explanation for the differences in earnings is that kindergarten teachers

The accumulation of investments in people,such as education and on the job training,is known as

For a "superstar" to emerge,it must be the case that

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country.People from the west also receive lower wages than people from the east.From this information alone,we can conclude that it is possible that

Which of the following is true of minimum-wage laws?

Expenditures on human capital

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

A difference in wages between a highly-educated worker and a less-educated worker is

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

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Other things equal,a particular job will likely pay a higher wage if it involves

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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

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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