Exam 19: Earnings and Discrimination

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

The difference in wages that results from nonmonetary characteristics of different jobs is called the

Tiffany is a black 21-year-old female, and Danielle is a black 41-year-old female. Both Tiffany and Danielle were accounting majors, and they graduated from the same college with the same GPA - Tiffany in 2013 and Danielle in 1992. Tiffany and Danielle are both auditors at the same accounting firm. Tiffany earns $63,000 a year, and Danielle earns $95,000 a year. Select the best explanation for this wage difference.

Over the past 30 years, the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S. As a result, the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing.

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Which of the following is not an example of capital used in production?

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

The signaling theory of education is most similar to the

The accumulation of investments in people is called

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

A consensus view among economists regarding the possibility of labor-market discrimination is that

Which of the following is not an interpretation of the "beauty premium"?

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major), they are providing evidence in support of the

Difference in wages can be explained by differences in

Discrimination may persist even in competitive markets when the source of the discrimination is

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?