Question 1

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Accepted Answer

A)  most people's preference is to work the day shift. 
B)  some people prefer to work a night shift for nonmonetary reasons. 
C)  night shift jobs are generally more technically difficult. 
D)  more women than men work the night shift. 
A)  most people's preference is to work the day shift. 
B)  some people prefer to work a night shift for nonmonetary reasons. 
C)  night shift jobs are generally more technically difficult. 
D)  more women than men work the night shift.

Question 2

According to the human-capital view,education

Accepted Answer

A)  has no effect on lifetime earnings. 
B)  alters work ethic. 
C)  enhances productivity. 
D)  is an indicator of natural ability. 
A)  has no effect on lifetime earnings. 
B)  alters work ethic. 
C)  enhances productivity. 
D)  is an indicator of natural ability.

Question 3

Which of the following does not explain the "beauty premium" differences in wages?

Accepted Answer

A)  Better-looking people are preferred by customers;thus,employers will pay them higher wages than average-looking people. 
B)  People who project an attractive personal appearance may be more intelligent than average-looking people;thus,employers will pay them higher wages than average-looking people. 
C)  Average-looking people are preferred by customers;thus,employers will pay them higher wages than better-looking people. 
D)  Employers discriminate in favor of better-looking people. 
A)  Better-looking people are preferred by customers;thus,employers will pay them higher wages than average-looking people. 
B)  People who project an attractive personal appearance may be more intelligent than average-looking people;thus,employers will pay them higher wages than average-looking people. 
C)  Average-looking people are preferred by customers;thus,employers will pay them higher wages than better-looking people. 
D)  Employers discriminate in favor of better-looking people.

Question 4

The human capital theory explanation for why people invest in education has been challenged by a theory that suggests

Accepted Answer

A)  schooling acts as a signal of ability. 
B)  humans cannot be considered "capital." 
C)  productivity is not linked to wages. 
D)  college is largely a social phenomenon. 
A)  schooling acts as a signal of ability. 
B)  humans cannot be considered "capital." 
C)  productivity is not linked to wages. 
D)  college is largely a social phenomenon.

Question 5

Economic theory of labor markets suggests that wages are governed by labor supply and labor demand.

Accepted Answer

A) True 
 B)False

Question 6

Studies of professional sports teams suggest that,in sports,racial discrimination is

Accepted Answer

A)  rare. 
B)  common and that owners of teams are largely to blame. 
C)  common and that customers (fans)are largely to blame. 
D)  None of the above is correct;there are no reliable studies of discrimination in sports due to the difficulties inherent in measuring athletes' productivity. 
A)  rare. 
B)  common and that owners of teams are largely to blame. 
C)  common and that customers (fans)are largely to blame. 
D)  None of the above is correct;there are no reliable studies of discrimination in sports due to the difficulties inherent in measuring athletes' productivity.

Question 7

Why do major-league baseball players get paid more than minor-league players?

Accepted Answer

A)  Major-league players are better athletes. 
B)  The higher wage reflects a compensating differential. 
C)  Playing in the major leagues in more pleasant then playing in the minor leagues. 
D)  The higher wage is often due to educational discrepancies. 
A)  Major-league players are better athletes. 
B)  The higher wage reflects a compensating differential. 
C)  Playing in the major leagues in more pleasant then playing in the minor leagues. 
D)  The higher wage is often due to educational discrepancies.

Question 8

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)  The characteristics of workers,such as their education and experience,the characteristics of jobs,such as their pleasantness or unpleasantness,and the presence or absence of discrimination by employers all determine equilibrium wages. 
B)  Labor unions,minimum wage laws,and efficiency wages all may increase wages above their equilibrium level. 
C)  Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker. 
D)  Discrimination by employers against a group of workers may artificially lower wages for that group. 
A)  The characteristics of workers,such as their education and experience,the characteristics of jobs,such as their pleasantness or unpleasantness,and the presence or absence of discrimination by employers all determine equilibrium wages. 
B)  Labor unions,minimum wage laws,and efficiency wages all may increase wages above their equilibrium level. 
C)  Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker. 
D)  Discrimination by employers against a group of workers may artificially lower wages for that group.

Question 9

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Accepted Answer

A) True 
 B)False

Question 10

In determining wages,ability,effort,and chance

Accepted Answer

A)  probably play no role whatsoever. 
B)  play a role,but their importance is hard to gauge since ability,effort,and chance are hard to measure. 
C)  play a role,and that role is fully captured in easy-to-measure factors such as human capital and age. 
D)  play a role,and it is fully explained within the context of compensating differentials. 
A)  probably play no role whatsoever. 
B)  play a role,but their importance is hard to gauge since ability,effort,and chance are hard to measure. 
C)  play a role,and that role is fully captured in easy-to-measure factors such as human capital and age. 
D)  play a role,and it is fully explained within the context of compensating differentials.

Question 11

Discrimination by a manager in the hiring process may be consistent with the decision to maximize profits if

Accepted Answer

A)  customers are willing to pay higher prices in order to maintain the discrimination. 
B)  the discrimination is based on race but not gender. 
C)  the discrimination is based on gender but not race. 
D)  Discrimination is never consistent with profit maximization. 
A)  customers are willing to pay higher prices in order to maintain the discrimination. 
B)  the discrimination is based on race but not gender. 
C)  the discrimination is based on gender but not race. 
D)  Discrimination is never consistent with profit maximization.

Question 12

If an employer's behavior is supportive of the theory of efficiency wages,the employer would

Accepted Answer

A)  raise wages in an effort to increase worker effort. 
B)  raise wages in an effort to increase worker turnover. 
C)  decrease wages in an effort to increase worker effort. 
D)  decrease wages in an effort to increase worker turnover. 
A)  raise wages in an effort to increase worker effort. 
B)  raise wages in an effort to increase worker turnover. 
C)  decrease wages in an effort to increase worker effort. 
D)  decrease wages in an effort to increase worker turnover.

Question 13

If,as some economists believe,changes in technology over recent decades have brought about changes in labor markets,then those changes likely have resulted in

Accepted Answer

A)  reduced emphasis on compensating differentials as an explanation for wage differences. 
B)  a reduced emphasis on human-capital differences among workers as an explanation for wage differences. 
C)  a narrowing of the earnings gap between high-skilled workers and low-skilled workers. 
D)  a widening of the earnings gap between high-skilled workers and low-skilled workers. 
A)  reduced emphasis on compensating differentials as an explanation for wage differences. 
B)  a reduced emphasis on human-capital differences among workers as an explanation for wage differences. 
C)  a narrowing of the earnings gap between high-skilled workers and low-skilled workers. 
D)  a widening of the earnings gap between high-skilled workers and low-skilled workers.

Question 14

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)  An employer is more likely to grant an interview to a person graduating from Yale than from the local community college. 
B)  An employer is more likely to grant an interview to a person graduating from the local community college than from Yale. 
C)  An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha. 
D)  An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily." 
A)  An employer is more likely to grant an interview to a person graduating from Yale than from the local community college. 
B)  An employer is more likely to grant an interview to a person graduating from the local community college than from Yale. 
C)  An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha. 
D)  An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."

Question 15

Which of the following statements is not correct?

Accepted Answer

A)  If the signaling theory of education is correct,additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education. 
B)  The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive. 
C)  Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits. 
D)  The theory of compensating wage differentials reflects the different skills,abilities,and productivity of workers. 
A)  If the signaling theory of education is correct,additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education. 
B)  The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive. 
C)  Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits. 
D)  The theory of compensating wage differentials reflects the different skills,abilities,and productivity of workers.

Question 16

The very high pay earned by the best actors and actresses is partially explained by the fact that

Accepted Answer

A)  they benefit from a compensating differential. 
B)  moviegoers all want to see the very best actors,not second-rate actors. 
C)  they have acting degrees from accredited acting schools. 
D)  the supply of good actors is very large. 
A)  they benefit from a compensating differential. 
B)  moviegoers all want to see the very best actors,not second-rate actors. 
C)  they have acting degrees from accredited acting schools. 
D)  the supply of good actors is very large.

Question 17

Discrimination may persist even in competitive markets when the source of the discrimination is

Accepted Answer

A)  employer prejudice. 
B)  customer prejudice. 
C)  wage prejudice. 
D)  employee prejudice. 
A)  employer prejudice. 
B)  customer prejudice. 
C)  wage prejudice. 
D)  employee prejudice.

Question 18

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Accepted Answer

A)  physical-capital theory 
B)  human-capital theory 
C)  signaling theory 
D)  neoclassical theory 
A)  physical-capital theory 
B)  human-capital theory 
C)  signaling theory 
D)  neoclassical theory

Question 19

Figure 19-3
The manufacturing labor market.  
-Refer to Figure 19-3.Suppose the manufacturing labor market,which is non-unionized,is in equilibrium at a wage equal to $30.Suppose now that the AFL-CIO (a labor organization)organizes the workers in the manufacturing market and negotiates a wage of $38 per hour.Because of the union,

Accepted Answer

A)  10 people who were once employed are now unemployed. 
B)  20 people who were once employed are now unemployed. 
C)  40 people who were once employed are now unemployed. 
D)  20 people who were once unemployed are now employed. 
A)  10 people who were once employed are now unemployed. 
B)  20 people who were once employed are now unemployed. 
C)  40 people who were once employed are now unemployed. 
D)  20 people who were once unemployed are now employed.

Question 20

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Accepted Answer

A)  women choose competitive environments more than men. 
B)  women and men choose competitive environments equally. 
C)  women choose competitive environments less than men. 
D)  women are just as likely as men to have high-paying corporate jobs. 
A)  women choose competitive environments more than men. 
B)  women and men choose competitive environments equally. 
C)  women choose competitive environments less than men. 
D)  women are just as likely as men to have high-paying corporate jobs.

Exam 19: Earnings and Discrimination

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

According to the human-capital view,education

Which of the following does not explain the "beauty premium" differences in wages?

The human capital theory explanation for why people invest in education has been challenged by a theory that suggests

Economic theory of labor markets suggests that wages are governed by labor supply and labor demand.

Studies of professional sports teams suggest that,in sports,racial discrimination is

Why do major-league baseball players get paid more than minor-league players?

Which of the following statements does not accurately describe the market for labor?

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

In determining wages,ability,effort,and chance

Discrimination by a manager in the hiring process may be consistent with the decision to maximize profits if

If an employer's behavior is supportive of the theory of efficiency wages,the employer would

If,as some economists believe,changes in technology over recent decades have brought about changes in labor markets,then those changes likely have resulted in

Which of the following represents an example of labor-market discrimination?

Which of the following statements is not correct?

The very high pay earned by the best actors and actresses is partially explained by the fact that

Discrimination may persist even in competitive markets when the source of the discrimination is

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

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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