Exam 19: Earnings and Discrimination

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at $10. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $12.50, then employment is

Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?

Above-equilibrium wages caused by efficiency wages will most likely result in

The National Collegiate Athletic Association (NCAA) has long argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.

Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the

If an employer pays a man a higher wage than a woman, the employer

First grade teachers who work in Lynn, Massachusetts's (a large, low income city north of Boston) public schools earn more than first grade teachers who work in private schools in more affluent communities north of Boston. Lynn teachers belong to a teachers' union. Which statement best explains the scenario described above?

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 $25. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. Because of the union,

The "beauty premium" can be explained by the fact that

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

Education raises wages because the demanders of labor

Daryn and Nick work for two different companies, but each performs the same job working on a loading dock. Daryn, however, earns a higher salary than his friend Nick The difference in salary could illustrate union wages if Daryn's annual salary is covered by a collective bargaining agreement and Nick's is not.

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Other things equal, when the supply of workers is low, one would predict that market wages would be

The ownership of human capital

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

That some schools direct females away from science and math courses is evidence of

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?