Question 1

Which of the following statements is not correct?

Accepted Answer

A)  Some firms pay wages that are above the equilibrium wage. 
B)  Workers sometimes form labor unions to push their wages up. 
C)  Wages never deviate from the balance of supply and demand in the market for labor. 
D)  The federal government mandates that employers pay their workers at least as much as the minimum wage. 
A)  Some firms pay wages that are above the equilibrium wage. 
B)  Workers sometimes form labor unions to push their wages up. 
C)  Wages never deviate from the balance of supply and demand in the market for labor. 
D)  The federal government mandates that employers pay their workers at least as much as the minimum wage.

Question 2

In the signaling theory of education,

Accepted Answer

A)  schooling itself does not lead to more productive workers. 
B)  chance plays more of a role than in the human-capital theory. 
C)  schooling enhances worker productivity. 
D)  compensating differentials do not matter. 
A)  schooling itself does not lead to more productive workers. 
B)  chance plays more of a role than in the human-capital theory. 
C)  schooling enhances worker productivity. 
D)  compensating differentials do not matter.

Question 3

The wage gap between skilled and unskilled worker has

Accepted Answer

A)  risen; some economists argue that this is partly due to increased international trade. 
B)  risen; some economists argue that this is partly due to decreased international trade. 
C)  fallen; some economists argue that this is partly due to increased international trade. 
D)  fallen; some economists argue that this is partly due to decreased international trade. 
A)  risen; some economists argue that this is partly due to increased international trade. 
B)  risen; some economists argue that this is partly due to decreased international trade. 
C)  fallen; some economists argue that this is partly due to increased international trade. 
D)  fallen; some economists argue that this is partly due to decreased international trade.

Question 4

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Accepted Answer

A)  the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years. 
B)  developing countries do not pay workers the value of their marginal product. 
C)  developed economies export high-skill jobs to developing countries. 
D)  All of the above are correct. 
A)  the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years. 
B)  developing countries do not pay workers the value of their marginal product. 
C)  developed economies export high-skill jobs to developing countries. 
D)  All of the above are correct.

Question 5

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Accepted Answer

The answer of The theory of education that states firms...

Question 6

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

Accepted Answer

A) True 
 B)False

Question 7

A 1990 study of the market for collectable baseball cards suggested

Accepted Answer

A)  there was no evidence of price discrimination on the basis of player position (hitter versus pitcher). 
B)  markets in which the product price is low are not typically characterized by consumer-driven race discrimination. 
C)  cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players. 
D)  cards for black players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable white players. 
A)  there was no evidence of price discrimination on the basis of player position (hitter versus pitcher). 
B)  markets in which the product price is low are not typically characterized by consumer-driven race discrimination. 
C)  cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players. 
D)  cards for black players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable white players.

Question 8

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Accepted Answer

The U.S. tends to import goods produced

Question 9

Which of the following would both make a worker's wage higher than otherwise?

Accepted Answer

A)  the work is safe, the employer pays an efficiency wage 
B)  the work is safe, the employer does not pay an efficiency wage 
C)  the work is dangerous, the employer pays an efficiency wage 
D)  the work is dangerous, the employer does not pay and efficiency wage 
A)  the work is safe, the employer pays an efficiency wage 
B)  the work is safe, the employer does not pay an efficiency wage 
C)  the work is dangerous, the employer pays an efficiency wage 
D)  the work is dangerous, the employer does not pay and efficiency wage

Question 10

Figure 19-3
The manufacturing labor market.  
-Refer to Figure 19-3. Suppose the manufacturing labor market, which is non-unionized, is in equilibrium at a wage equal to $20. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. After the workers become unionized, how many workers do manufacturing firms collectively hire?

Accepted Answer

A)  160 workers 
B)  200 workers 
C)  240 workers 
D)  There is not enough information to determine the number of workers. 
A)  160 workers 
B)  200 workers 
C)  240 workers 
D)  There is not enough information to determine the number of workers.

Question 11

Lucy and Lincoln are salespeople working for the same company with equal skills, ability, and experience. Both are paid a small base salary but the majority of their compensation is in the form of a commission, which is a percentage of the sales they make. Lucy earns more each year than Lincoln. What can you conclude about Lucy and Lincoln?

Accepted Answer

Lucy is more product

Question 12

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 13

Education and on-the-job training are sources of human capital.

Accepted Answer

A) True 
 B)False

Question 14

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

Accepted Answer

A)  both skilled and unskilled labor will rise proportionately. 
B)  skilled labor will fall and the demand for unskilled labor will rise. 
C)  skilled labor will rise and the demand for unskilled labor will fall. 
D)  both skilled and unskilled labor will be unaffected, assuming no barriers to free trade. 
A)  both skilled and unskilled labor will rise proportionately. 
B)  skilled labor will fall and the demand for unskilled labor will rise. 
C)  skilled labor will rise and the demand for unskilled labor will fall. 
D)  both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.

Question 15

When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers.

Accepted Answer

A) True 
 B)False

Question 16

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Accepted Answer

A)  coal mining is a declining industry. 
B)  coal mining jobs are potentially more dangerous than jobs with comparable education requirements. 
C)  all coal mines use nonunion labor. 
D)  coal imports are rising. 
A)  coal mining is a declining industry. 
B)  coal mining jobs are potentially more dangerous than jobs with comparable education requirements. 
C)  all coal mines use nonunion labor. 
D)  coal imports are rising.

Question 17

A difference in wages between a highly-educated worker and a less-educated worker

Accepted Answer

A)  may be due to a difference in the amounts of human capital between the workers. 
B)  may be a signal that the market is indifferent to a worker's level of human capital. 
C)  is considered unfair by economists. 
D)  is considered unfair by everyone. 
A)  may be due to a difference in the amounts of human capital between the workers. 
B)  may be a signal that the market is indifferent to a worker's level of human capital. 
C)  is considered unfair by economists. 
D)  is considered unfair by everyone.

Question 18

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

Accepted Answer

A)  Firms that ran the streetcars were more interested in segregating customers by race than profits. 
B)  The firms that ran the streetcars were unanimous in their support of laws that required segregation of races. 
C)  Before the passage of laws that mandated segregation of races on streetcars, segregation of smokers and nonsmokers was more common than segregation of races. 
D)  Segregation based on gender was more common than race at first. 
A)  Firms that ran the streetcars were more interested in segregating customers by race than profits. 
B)  The firms that ran the streetcars were unanimous in their support of laws that required segregation of races. 
C)  Before the passage of laws that mandated segregation of races on streetcars, segregation of smokers and nonsmokers was more common than segregation of races. 
D)  Segregation based on gender was more common than race at first.

Question 19

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years. As a result of this investment, economists who adhere to the human capital view of education would predict

Accepted Answer

A)  rising wages as labor productivity is enhanced. 
B)  falling wages as the labor market is saturated with too many educated workers. 
C)  the marginal productivity of capital would not be affected. 
D)  the marginal productivity of labor would not be affected. 
A)  rising wages as labor productivity is enhanced. 
B)  falling wages as the labor market is saturated with too many educated workers. 
C)  the marginal productivity of capital would not be affected. 
D)  the marginal productivity of labor would not be affected.

Question 20

The profit motive counteracts

Accepted Answer

A)  consumer discrimination. 
B)  discrimination in sports. 
C)  the beauty premium. 
D)  None of the above is correct. 
A)  consumer discrimination. 
B)  discrimination in sports. 
C)  the beauty premium. 
D)  None of the above is correct.

Which of the following statements is not correct?

In the signaling theory of education,

The wage gap between skilled and unskilled worker has

The statement "the rich get richer and the poor get poorer" is evident in the fact that

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

A 1990 study of the market for collectable baseball cards suggested

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Which of the following would both make a worker's wage higher than otherwise?

Evidence of discrimination is most apparent when one compares wages among broad groups.

Education and on-the-job training are sources of human capital.

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers.

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

A difference in wages between a highly-educated worker and a less-educated worker

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years. As a result of this investment, economists who adhere to the human capital view of education would predict

The profit motive counteracts

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

Exam 19: Earnings and Discrimination

Which of the following statements is not correct?

In the signaling theory of education,

The wage gap between skilled and unskilled worker has

The statement "the rich get richer and the poor get poorer" is evident in the fact that

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials.

A 1990 study of the market for collectable baseball cards suggested

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Which of the following would both make a worker's wage higher than otherwise?

Evidence of discrimination is most apparent when one compares wages among broad groups.

Education and on-the-job training are sources of human capital.

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less than those paid to male workers.

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

A difference in wages between a highly-educated worker and a less-educated worker

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years. As a result of this investment, economists who adhere to the human capital view of education would predict

The profit motive counteracts

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