Exam 19: Earnings and Discrimination

Labor unions will raise the quantity of labor demanded.

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

If firms are competitive, then labor-market discrimination

People are willing to invest in human capital because

As a summer job, some teenagers choose to detassle corn, a job requiring long hours walking corn fields in the summer heat. Other teens take jobs working as lifeguards. Given that detassling corn is a more difficult job than working as a lifeguard, we would expect a difference in wages between the two jobs. This difference is known as

Minimum wage laws

John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital.

Tom and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Eric's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Tom's employer is a savvy business manager and the sales manager is experienced and works hard. If Tom has higher earnings than Eric, the difference is most likely a function of

If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the

Harry is 40 and black. Dan is 40 and white. Both work as plumbers, but Harry earns more.

Figure 19-1 -Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

It is likely that, if we could measure the quality as well as the quantity of education,

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

By definition, there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Economists found evidence of discrimination in each of the following markets except

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

Which of the following statements is not correct?

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.