Exam 19: Earnings and Discrimination

Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

Which of the following theories explains why increased education translates into higher wages?

Which of the following is not considered human capital?

Between 1975 and 2011, the wage gap between women with a high school education and women with a college education increased. In particular, in 2011 women with a college degree earned about

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Increases in international trade and technological change have been offered as explanations for the

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

The changing gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative to skilled occupations.

A recent law school graduate is considering two offers to practice law, one in New York and one in Illinois. The New York bar exam is very difficult to pass compared with Illinois's exam. Assuming all other things equal, the attorney would expect

According to economic historians, streetcars in southern cities in the early 1900s were racially segregated because the owners of the firms believed that segregation raised the firms' profits.

Air-traffic controllers get paid high wages given their level of education. They also get frequent breaks and may only work a few days a week. Which of the following could explain their high wage?

If the signaling theory of education is correct,

Which of the following would tend to lessen the wage gap between a country's skilled and unskilled workers?

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, which of the following could be considered an efficiency wage?

Scenario 19-5 Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5. Why might an economist be skeptical of Jason's discrimination complaint?

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

How does the theory of efficiency wages explain above-equilibrium wages?

The job of night watchman at the Punxsutawny Phil Groundhog museum is known to have a high wage. Which of the following would push the night watchman's wage higher?

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what are the equilibrium wage and quantity of labor?