Question 1

The "superstar" phenomenon can apply to which of these jobs?

Accepted Answer

A)  high-school teacher 
B)  author 
C)  heart surgeon 
D)  carpenter 
A)  high-school teacher 
B)  author 
C)  heart surgeon 
D)  carpenter

Question 2

A compensating differential is

Accepted Answer

A)  a difference in pay due to nonmonetary characteristics of different jobs. 
B)  a high wage paid by employers to entice workers to be more productive. 
C)  the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage. 
D)  due only to difference in the productivity of workers with different skills. 
A)  a difference in pay due to nonmonetary characteristics of different jobs. 
B)  a high wage paid by employers to entice workers to be more productive. 
C)  the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage. 
D)  due only to difference in the productivity of workers with different skills.

Question 3

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald) and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then

Accepted Answer

A)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical. 
B)  the equilibrium wage in the "bald" market will eventually fall. 
C)  the equilibrium wage in the "hairy" market will eventually rise. 
D)  wages in the market for barbers can never be in equilibrium. 
A)  competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical. 
B)  the equilibrium wage in the "bald" market will eventually fall. 
C)  the equilibrium wage in the "hairy" market will eventually rise. 
D)  wages in the market for barbers can never be in equilibrium.

Question 4

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 5

Of the theories listed below, which do the best job of explaining why educated people are paid more than uneducated people?

Accepted Answer

A)  human-capital and price-fixing 
B)  human-capital and signaling 
C)  wage-differential and signaling 
D)  wage-differential and compensating-differentials 
A)  human-capital and price-fixing 
B)  human-capital and signaling 
C)  wage-differential and signaling 
D)  wage-differential and compensating-differentials

Question 6

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Accepted Answer

A)  discriminatory wage practice. 
B)  compensating differential. 
C)  wage inequity. 
D)  a market inefficiency. 
A)  discriminatory wage practice. 
B)  compensating differential. 
C)  wage inequity. 
D)  a market inefficiency.

Question 7

According to proponents of the signaling theory of education,

Accepted Answer

A)  schooling has no real productivity benefit. 
B)  no one person finds it easier to earn a college degree than does any other person. 
C)  the human-capital view of education is entirely correct. 
D)  employers send signals to young people to persuade them to expend whatever effort is necessary to earn college degrees. 
A)  schooling has no real productivity benefit. 
B)  no one person finds it easier to earn a college degree than does any other person. 
C)  the human-capital view of education is entirely correct. 
D)  employers send signals to young people to persuade them to expend whatever effort is necessary to earn college degrees.

Question 8

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

Accepted Answer

The answer of Superstars arise in markets in which every...

Question 9

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Accepted Answer

A)  discrimination based on race 
B)  discrimination in sports 
C)  consumer discrimination 
D)  discrimination based on educational attainment 
A)  discrimination based on race 
B)  discrimination in sports 
C)  consumer discrimination 
D)  discrimination based on educational attainment

Question 10

Which of the following does not affect the wages a worker earns?

Accepted Answer

A)  natural ability 
B)  effort 
C)  chance 
D)  All of the above affect the wages a worker earns. 
A)  natural ability 
B)  effort 
C)  chance 
D)  All of the above affect the wages a worker earns.

The "superstar" phenomenon can apply to which of these jobs?

A compensating differential is

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Of the theories listed below, which do the best job of explaining why educated people are paid more than uneducated people?

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

According to proponents of the signaling theory of education,

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Which of the following does not affect the wages a worker earns?

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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Exam 19: Earnings and Discrimination

The "superstar" phenomenon can apply to which of these jobs?

A compensating differential is

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Of the theories listed below, which do the best job of explaining why educated people are paid more than uneducated people?

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

According to proponents of the signaling theory of education,

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Which of the following does not affect the wages a worker earns?

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