Exam 19: Earnings and Discrimination

Which of the following examples best describes the signaling theory of education?

Consider two groups of workers of equal skill level and experience: those who collect garbage and those who stuff envelopes with campaign fliers. Which group is likely to be paid more and why?

Some discriminatory hiring practices can be expected, even if markets are competitive, as a result of

In discussing discrimination and the wage differences that exist between men and women and between blacks and whites, it has been said that "the disease is political even if the symptom is economic." What does this mean?

Since measurable factors such as years of experience and years of education explain less than half of the variation in wages, ability, effort, and chance must play a significant role in determining wages.

Figure 19-2 -Refer to Figure 19-2. This figure depicts labor demand and supply in a nonunionized labor market. If the minimum wage were $7.50, employment in this market would be

Studies of discrimination in baseball suggest that black players

Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay

The return to investment in human capital is observed

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

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

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

Increases in international trade and technological change have been offered as explanations for the

Callie has just graduated from Hairs-R-Us Beauty School with a license to cut hair. She can earn $15 an hour styling hair at the local hair salon or $20 an hour styling hair at the local funeral home. The higher wage offered by the funeral home is an example of

If, as some economists believe, changes in technology over recent decades have brought about changes in labor markets, then those changes likely have resulted in

A union's major source of power is its

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how many fewer people are employed if a minimum wage of $8 per hour is imposed on this market as compared to allowing wages to adjust to balance labor demand and labor supply?

On average professors of finance earn more than professors of economics. Other things the same, what does this imply about the supply of each type of professor?

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

Efficiency wages will raise the quantity of labor supplied to the market.