Question 1

A worker association that bargains with employers over wages and working conditions is called

Accepted Answer

A)  a strike. 
B)  an oligopoly. 
C)  a firm. 
D)  a union. 
A)  a strike. 
B)  an oligopoly. 
C)  a firm. 
D)  a union.

Question 2

Efficiency wages may decrease employee turnover.

Accepted Answer

A) True 
 B)False

Question 3

In the presence of discrimination by customers,

Accepted Answer

A)  market forces nevertheless always work to prevent discriminatory wage differentials. 
B)  discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits. 
C)  discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination. 
D)  discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government. 
A)  market forces nevertheless always work to prevent discriminatory wage differentials. 
B)  discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits. 
C)  discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination. 
D)  discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government.

Question 4

Figure 19-4  
-Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Accepted Answer

A)  rise from $15 per hour to $18 per hour and 100 fewer people will be employed. 
B)  rise from $15 per hour to $18 per hour and 200 more people will be employed. 
C)  fall from $15 per hour to $12 per hour and 100 more people will be employed. 
D)  fall from $18 per hour to $15 per hour and 200 fewer people will be employed. 
A)  rise from $15 per hour to $18 per hour and 100 fewer people will be employed. 
B)  rise from $15 per hour to $18 per hour and 200 more people will be employed. 
C)  fall from $15 per hour to $12 per hour and 100 more people will be employed. 
D)  fall from $18 per hour to $15 per hour and 200 fewer people will be employed.

Question 5

Which of the following factors does not affect the value of a worker's marginal product?

Accepted Answer

A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials 
A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials

Question 6

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.

Question 7

Sometimes wages are set above the equilibrium level when

Accepted Answer

A)  garbage collectors earn higher wages than secretaries due to compensating differentials. 
B)  accountants earn more than dental technicians due to higher educational requirements. 
C)  movie superstars earn more than talented plumbers. 
D)  unions negotiate higher wages by threatening to strike. 
A)  garbage collectors earn higher wages than secretaries due to compensating differentials. 
B)  accountants earn more than dental technicians due to higher educational requirements. 
C)  movie superstars earn more than talented plumbers. 
D)  unions negotiate higher wages by threatening to strike.

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 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 10

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair. She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home. The higher wage offered by the funeral home is an example of

Accepted Answer

A)  a human capital differential. 
B)  a compensating differential. 
C)  signaling theory. 
D)  the superstar phenomenon. 
A)  a human capital differential. 
B)  a compensating differential. 
C)  signaling theory. 
D)  the superstar phenomenon.

Question 11

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A)  human capital and compensating differentials 
B)  human capital but not compensating differentials 
C)  compensating differentials but not human capital 
D)  neither human capital nor compensating differentials 
A)  human capital and compensating differentials 
B)  human capital but not compensating differentials 
C)  compensating differentials but not human capital 
D)  neither human capital nor compensating differentials

Question 12

The return to investment in human capital is observed

Accepted Answer

A)  only when workers are assigned identical tasks. 
B)  in the wage differential between workers. 
C)  in the high school dropout rate in inner-city urban school districts. 
D)  in the low wages of educated factory workers. 
A)  only when workers are assigned identical tasks. 
B)  in the wage differential between workers. 
C)  in the high school dropout rate in inner-city urban school districts. 
D)  in the low wages of educated factory workers.

Question 13

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 14

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Accepted Answer

5 to 10 pe

Question 15

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

Accepted Answer

A)  a surplus of labor. 
B)  no unemployment. 
C)  an increase in the number of people employed. 
D)  an decrease in the quantity of labor supplied. 
A)  a surplus of labor. 
B)  no unemployment. 
C)  an increase in the number of people employed. 
D)  an decrease in the quantity of labor supplied.

Question 16

Which of the following is an example of a compensating differential?

Accepted Answer

A)  Two workers with different levels of on-the-job training earn different salaries. 
B)  Two workers whose jobs entail different working conditions earn different salaries. 
C)  Two workers whose jobs require different levels of technical expertise earn different salaries. 
D)  Two workers with different levels of natural ability earn different salaries. 
A)  Two workers with different levels of on-the-job training earn different salaries. 
B)  Two workers whose jobs entail different working conditions earn different salaries. 
C)  Two workers whose jobs require different levels of technical expertise earn different salaries. 
D)  Two workers with different levels of natural ability earn different salaries.

Question 17

Which theory states that education is correlated with natural ability?

Accepted Answer

The answer of Which theory states that education is correlated...

Question 18

Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect

Accepted Answer

A)  discrimination. 
B)  differences in human capital. 
C)  differences in signaling. 
D)  chance. 
A)  discrimination. 
B)  differences in human capital. 
C)  differences in signaling. 
D)  chance.

Question 19

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Accepted Answer

A)  effort and natural ability. 
B)  natural ability and years of experience. 
C)  years of experience and job characteristics. 
D)  race and job characteristics. 
A)  effort and natural ability. 
B)  natural ability and years of experience. 
C)  years of experience and job characteristics. 
D)  race and job characteristics.

Question 20

Evidence of differences in the average wages of black workers compared to white workers

Accepted Answer

A)  does not alone provide conclusive evidence of discrimination. 
B)  clearly indicates differences in productivity between races. 
C)  is seldom used to provide evidence of discriminatory bias. 
D)  clearly indicates discrimination on the basis of race. 
A)  does not alone provide conclusive evidence of discrimination. 
B)  clearly indicates differences in productivity between races. 
C)  is seldom used to provide evidence of discriminatory bias. 
D)  clearly indicates discrimination on the basis of race.

Exam 19: Earnings and Discrimination

A worker association that bargains with employers over wages and working conditions is called

Efficiency wages may decrease employee turnover.

In the presence of discrimination by customers,

Figure 19-4 -Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Which of the following factors does not affect the value of a worker's marginal product?

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

Sometimes wages are set above the equilibrium level when

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 statements does not accurately describe the market for labor?

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair. She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home. The higher wage offered by the funeral home is an example of

Which of the following can be used to help explain wage differences among different groups of workers?

The return to investment in human capital is observed

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

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

Which of the following is an example of a compensating differential?

Which theory states that education is correlated with natural ability?

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Evidence of differences in the average wages of black workers compared to white workers

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

Filters