Question 1

Studies of discrimination in baseball suggest that black players

Accepted Answer

A)  suffered from discriminatory wage differentials several decades ago and those wage differentials persist today. 
B)  suffered from discriminatory wage differentials several decades ago but those wage differentials have been eliminated. 
C)  did not suffer from discriminatory wage differentials several decades ago but in recent years wage differentials have become evident. 
D)  did not suffer from discriminatory wage differentials in the past and they do not suffer from wage differentials today. 
A)  suffered from discriminatory wage differentials several decades ago and those wage differentials persist today. 
B)  suffered from discriminatory wage differentials several decades ago but those wage differentials have been eliminated. 
C)  did not suffer from discriminatory wage differentials several decades ago but in recent years wage differentials have become evident. 
D)  did not suffer from discriminatory wage differentials in the past and they do not suffer from wage differentials today.

Question 2

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Accepted Answer

A)  increased. 
B)  decreased. 
C)  remained constant. 
D)  first increased by a small percent, then decreased by a large percent. 
A)  increased. 
B)  decreased. 
C)  remained constant. 
D)  first increased by a small percent, then decreased by a large percent.

Question 3

Labor-market discrimination based solely on age is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Accepted Answer

The answer of Many economists believe that competitive, market economies...

Question 5

Differences in human capital are likely to

Accepted Answer

A)  be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma. 
B)  be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination. 
C)  explain some of the differences in average wage rates across age classifications. 
D)  explain all of the differences in average wage rates across gender classifications. 
A)  be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma. 
B)  be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination. 
C)  explain some of the differences in average wage rates across age classifications. 
D)  explain all of the differences in average wage rates across gender classifications.

Question 6

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  woman is paid roughly the same as the median white woman. 
B)  woman is paid roughly the same as the median black man. 
C)  man is paid 21 percent less than the median white man. 
D)  All of the above are correct. 
A)  woman is paid roughly the same as the median white woman. 
B)  woman is paid roughly the same as the median black man. 
C)  man is paid 21 percent less than the median white man. 
D)  All of the above are correct.

Question 8

In empirical analyses of factors that help explain wages,

Accepted Answer

A)  effort and ability are not likely to contribute to large differences in wages in the U.S. economy. 
B)  economists typically find that measurable factors explain less than half of the variation in wages. 
C)  economists typically find few factors that are not explicitly measurable. 
D)  unmeasurable influences on wage differences are found to be quite small. 
A)  effort and ability are not likely to contribute to large differences in wages in the U.S. economy. 
B)  economists typically find that measurable factors explain less than half of the variation in wages. 
C)  economists typically find few factors that are not explicitly measurable. 
D)  unmeasurable influences on wage differences are found to be quite small.

Question 9

Which of the following statements accurately explains the superstar phenomenon in wages?

Accepted Answer

A)  Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work. 
B)  The more productive an author is, the more books she can write each year, so the more she earns. 
C)  Talented movie stars earn more than equally talented mechanics because technology allows the delivery of the services provided by the movie stars to all interested customers. 
D)  Athletes get paid for performing services that everyday people perform as hobbies. 
A)  Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work. 
B)  The more productive an author is, the more books she can write each year, so the more she earns. 
C)  Talented movie stars earn more than equally talented mechanics because technology allows the delivery of the services provided by the movie stars to all interested customers. 
D)  Athletes get paid for performing services that everyday people perform as hobbies.

Question 10

Figure 19-1  
-Refer to Figure 19-1. If the minimum wage in this market is $8, then

Accepted Answer

A)  employment is 10 million 
B)  employment is 12 million 
C)  there is a surplus of 1 million workers 
D)  there is a surplus of 3 million workers 
A)  employment is 10 million 
B)  employment is 12 million 
C)  there is a surplus of 1 million workers 
D)  there is a surplus of 3 million workers

Question 11

Figure 19-7  
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, when a minimum wage of $18 per hour is imposed in this market, how many unemployed workers result?

Accepted Answer

The answer of Figure 19-7  
-Refer to Figure 19-7....

Question 12

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Accepted Answer

A) True 
 B)False

Question 13

Scenario 19-2
Travis, a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park.
-Refer to Scenario 19-2. Travis is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Travis concludes that

Accepted Answer

A)  if the motel job also requires an ability to do general plumbing repairs, the wage offer will be higher than otherwise. 
B)  if the food distribution job has a requirement for special training or certification, the wage offer will be lower than otherwise. 
C)  if the food distribution job exposes him to the Ebola virus, the wage will be lower. 
D)  if the motel job involves substantial amounts of driving for supplies, the wage offer will be lower than otherwise. 
A)  if the motel job also requires an ability to do general plumbing repairs, the wage offer will be higher than otherwise. 
B)  if the food distribution job has a requirement for special training or certification, the wage offer will be lower than otherwise. 
C)  if the food distribution job exposes him to the Ebola virus, the wage will be lower. 
D)  if the motel job involves substantial amounts of driving for supplies, the wage offer will be lower than otherwise.

Question 14

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Accepted Answer

A)  black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. 
B)  black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. 
C)  job applicants with white names received 50 percent more phone calls from interested employers. 
D)  job applicants with white names received 7 percent more phone calls from interested employers. 
A)  black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. 
B)  black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. 
C)  job applicants with white names received 50 percent more phone calls from interested employers. 
D)  job applicants with white names received 7 percent more phone calls from interested employers.

Question 15

Figure 19-5  
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  400 
A)  100 
B)  200 
C)  300 
D)  400

Question 16

Economists generally agree that

Accepted Answer

A)  human capital theory provides the best explanation of discriminatory practices. 
B)  differences in average wages do not by themselves provide conclusive evidence about the magnitude of discrimination in labor markets. 
C)  discrimination is exclusively an economic, rather than political, phenomenon. 
D)  most of the wage differentials observed in the U.S. economy are due to discrimination. 
A)  human capital theory provides the best explanation of discriminatory practices. 
B)  differences in average wages do not by themselves provide conclusive evidence about the magnitude of discrimination in labor markets. 
C)  discrimination is exclusively an economic, rather than political, phenomenon. 
D)  most of the wage differentials observed in the U.S. economy are due to discrimination.

Question 17

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A)  is unlikely to find evidence of wage differentials. 
B)  can provide strong evidence of labor market discrimination. 
C)  is likely to misinterpret apparent evidence of labor market discrimination. 
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers. 
A)  is unlikely to find evidence of wage differentials. 
B)  can provide strong evidence of labor market discrimination. 
C)  is likely to misinterpret apparent evidence of labor market discrimination. 
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers.

Question 18

In general, the higher a person's education level,

Accepted Answer

A)  the higher the person's earnings. 
B)  the more physically attractive the person is likely to be. 
C)  the more socially outgoing the person is likely to be. 
D)  All of the above are correct. 
A)  the higher the person's earnings. 
B)  the more physically attractive the person is likely to be. 
C)  the more socially outgoing the person is likely to be. 
D)  All of the above are correct.

Question 19

Table 19-2
   Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-2. In 2011, on average how much more income would a man with a college degree earn than a man with a high school degree?

Accepted Answer

The answer of Table 19-2
   Source: US Census...

Question 20

In recent years, the amount of international trade in which the United States engages has

Accepted Answer

A)  increased, raising domestic demand for unskilled labor. 
B)  increased, reducing domestic demand for unskilled labor. 
C)  decreased, raising domestic demand for unskilled labor. 
D)  decreased, reducing domestic demand for unskilled labor. 
A)  increased, raising domestic demand for unskilled labor. 
B)  increased, reducing domestic demand for unskilled labor. 
C)  decreased, raising domestic demand for unskilled labor. 
D)  decreased, reducing domestic demand for unskilled labor.

Exam 19: Earnings and Discrimination

Studies of discrimination in baseball suggest that black players

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Labor-market discrimination based solely on age is illegal in the United States.

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Differences in human capital are likely to

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

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

In empirical analyses of factors that help explain wages,

Which of the following statements accurately explains the superstar phenomenon in wages?

Figure 19-1 -Refer to Figure 19-1. If the minimum wage in this market is $8, then

Figure 19-7 -Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, when a minimum wage of $18 per hour is imposed in this market, how many unemployed workers result?

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, what is the surplus of labor if a minimum wage of $8 per hour is imposed on this market?

Economists generally agree that

Empirical work that does not account for differences in the productivity of workers

In general, the higher a person's education level,

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. In 2011, on average how much more income would a man with a college degree earn than a man with a high school degree?

In recent years, the amount of international trade in which the United States engages has

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

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