Exam 19: Earnings and Discrimination

Dr.Benson is regarded as,by far,the best dentist in his part of the country,yet his income is not significantly higher than the average income for a dentist in his area.In contrast,Bo Johnson,the best baseball player in that region,earns five times the average salary of all baseball players.The most likely explanation is that

Store clerks are known to have low wages.This is likely to be reflect the fact that

It is increasingly clear that technological change,rather than international trade,has been largely responsible for an expanding wage gap between high-skill and low-skill workers.

A consensus view among economists regarding the possibility of labor-market discrimination is that

That some schools direct females away from science and math courses is evidence of

Discrimination is usually not a profit-maximizing strategy.

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 strengthen the discrimination complaint against Eddy's Hardware?

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Which of the following statements is correct?

Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women;however,economists argue against this approach because they don't trust any of the statistics quoted by the politicians.

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then the employment level

If the signaling theory of education is correct,

Joan is a white 23-year-old female,and Marcia is a black 23-year-old female.Both Joan and Marica are economics majors,and they graduated from the same college in the same year with the same GPA.Joan and Marcia both got jobs at a brokerage firm after graduating from college.They both work equally hard.Joan earns $38,000 a year,and Marcia earns $30,000 a year.Select the best explanation for this wage difference.

If men,on average,earn 20 percent more than women in a particular occupation,

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Jobs that involve pleasant work,as opposed to jobs that involve unpleasant work,usually pay

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on the night shift.The difference in pay is attributed to

According to evidence provided by the U.S.government,the median black

Economists are skeptical that discrimination is employer driven because

Which of the following explains the vast differences in earnings in the United States?