Exam 19: Earnings and Discrimination

In the early 20th century, streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back. The firms that ran the streetcars were

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Nancy and Sheila are both loan officers who started working for their current employer during the same year, graduated from the same university with bachelors' degrees in economics, and achieved similar performance reviews. Nancy earned a master's degree last year. If Nancy earns a higher annual salary than Sheila because she has more formal education, the employer is

Other things equal, one would predict that market wages would be relatively high when

Which of the following comparisons best illustrates a compensating differential?

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. What are two possible hypotheses to explain the changes in relative demand for high-skilled workers and low-skilled workers in recent years?

Which of the following does not explain the "beauty premium" differences in wages?

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs, especially for those workers who deal with the public.

Adam and Bob are identical twins who attended grammar school through high school together. Adam got a job after high school, and Bob got a job after graduating from college. Adam earns $36,000 a year, and Bob earns $69,000 a year. Select the best explanation for this wage difference.

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Name two occupations that have the two characteristics required for the superstar phenomenon.

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

Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination by employers and fellow workers."

Scenario 19-5 Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination. -Refer to Scenario 19-5. Which of the following statements would weaken Jason's case against his employer?

In a labor market free from discrimination, wages for workers that are employed by the same company will still differ.

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Economists who study labor markets have documented

Which of the following scenarios would serve to decrease the demand for unskilled labor in the U.S.?

Which of the following moves the wage above its equilibrium value?