Question 1

A difference in wages between a highly-educated worker and a less-educated worker

Accepted Answer

A)  may be due to a difference in the amounts of human capital between the workers. 
B)  may be a signal that the market is indifferent to a worker's level of human capital. 
C)  is considered unfair by economists. 
D)  is considered unfair by everyone. 
A)  may be due to a difference in the amounts of human capital between the workers. 
B)  may be a signal that the market is indifferent to a worker's level of human capital. 
C)  is considered unfair by economists. 
D)  is considered unfair by everyone.

Question 2

Figure 19-1  
-Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?

Accepted Answer

A)  2 million jobs are gained 
B)  no jobs are gained or lost 
C)  1 million jobs are lost 
D)  3 million jobs are lost 
A)  2 million jobs are gained 
B)  no jobs are gained or lost 
C)  1 million jobs are lost 
D)  3 million jobs are lost

Question 3

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Accepted Answer

A)  (i) only 
B)  (ii) only 
C)  (i) and (iii) only 
D)  (ii) and (iv) only 
A)  (i) only 
B)  (ii) only 
C)  (i) and (iii) only 
D)  (ii) and (iv) only

Question 4

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Accepted Answer

A) True 
 B)False

Question 5

Evidence from a study of the market for baseball players using 1960s data

Accepted Answer

A)  indicated that sports with strong player associations are unlikely to experience wage discrimination. 
B)  suggested that government regulation had eliminated most evidence of wage discrimination. 
C)  found some evidence of consumer-driven wage discrimination. 
D)  found that measurement of marginal productivity was very difficult for baseball players. 
A)  indicated that sports with strong player associations are unlikely to experience wage discrimination. 
B)  suggested that government regulation had eliminated most evidence of wage discrimination. 
C)  found some evidence of consumer-driven wage discrimination. 
D)  found that measurement of marginal productivity was very difficult for baseball players.

Question 6

A signaling theory of education suggests that educational attainment

Accepted Answer

A)  is a signal of high marginal productivity. 
B)  is correlated with natural ability. 
C)  increases the productivity of low-ability workers. 
D)  Both a and b are correct. 
A)  is a signal of high marginal productivity. 
B)  is correlated with natural ability. 
C)  increases the productivity of low-ability workers. 
D)  Both a and b are correct.

Question 7

Scenario 19-2
Travis, a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park.
-Refer to Scenario 19-2. Travis is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Travis concludes that

Accepted Answer

A)  if the motel job requires some night shift work, wages will be lower than otherwise. 
B)  the job that is more fun will have a higher wage. 
C)  if the motel job doesn't require any special skills, the wage offer will be lower than otherwise. 
D)  All of the above are correct. 
A)  if the motel job requires some night shift work, wages will be lower than otherwise. 
B)  the job that is more fun will have a higher wage. 
C)  if the motel job doesn't require any special skills, the wage offer will be lower than otherwise. 
D)  All of the above are correct.

Question 8

Cheryl is a professor at a local university. She hired a student from the university to babysit for her children and paid the student a wage higher than the typical wage paid to babysitters in her area to ensure the babysitter's reliability and that attention is paid to her children. What is the name for this above-equilibrium wage?

Accepted Answer

The answer of Cheryl is a professor at a local...

Question 9

The idea of paying workers an efficiency wage is that

Accepted Answer

A)  employers will find it profitable to hire more workers. 
B)  workers receive wages consistent with their specific compensating differentials. 
C)  workers and management gain at the expense of the stockholders of the company. 
D)  workers have the incentive to work harder, thus increasing their marginal productivity. 
A)  employers will find it profitable to hire more workers. 
B)  workers receive wages consistent with their specific compensating differentials. 
C)  workers and management gain at the expense of the stockholders of the company. 
D)  workers have the incentive to work harder, thus increasing their marginal productivity.

Question 10

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?

Accepted Answer

The answer of Figure 19-6  
-Refer to Figure 19-6....

Question 11

Sometimes workers earn higher wages through chance.

Accepted Answer

A) True 
 B)False

Question 12

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Accepted Answer

A) True 
 B)False

Question 13

A computer is an example of human capital.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?

Accepted Answer

A)  International trade has decreased the domestic demand for skilled labor and increased the domestic demand for unskilled labor. 
B)  Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor. 
C)  Both a and b are correct. 
D)  Neither a nor b is correct. 
A)  International trade has decreased the domestic demand for skilled labor and increased the domestic demand for unskilled labor. 
B)  Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor. 
C)  Both a and b are correct. 
D)  Neither a nor b is correct.

Question 15

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

Accepted Answer

A)  race. 
B)  level of education. 
C)  attitudes toward risk. 
D)  All of the above are forms of discrimination. 
A)  race. 
B)  level of education. 
C)  attitudes toward risk. 
D)  All of the above are forms of discrimination.

Question 16

Which of the following factors does not affect the value of a worker's marginal product?

Accepted Answer

A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials 
A)  discrimination against a particular group of workers by a firm's customers 
B)  a worker's level of disposable income 
C)  a worker's level of human capital 
D)  compensating wage differentials

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Accepted Answer

A)  natural ability. 
B)  geographic location of employment. 
C)  chance. 
D)  work effort. 
A)  natural ability. 
B)  geographic location of employment. 
C)  chance. 
D)  work effort.

Question 19

Which of the following variables related to a worker's wage are the most difficult to measure?

Accepted Answer

A)  ability, effort, and chance 
B)  job characteristics, gender, and race 
C)  gender, race, and geographic location 
D)  years of schooling, age, and years of experience 
A)  ability, effort, and chance 
B)  job characteristics, gender, and race 
C)  gender, race, and geographic location 
D)  years of schooling, age, and years of experience

Question 20

Evidence suggests that business owners are generally

Accepted Answer

A)  interested in profits only when discrimination is illegal. 
B)  more interested in discrimination than in making a profit. 
C)  unable to determine the link between discrimination and profitability. 
D)  more interested in making a profit than in discriminating against a particular group. 
A)  interested in profits only when discrimination is illegal. 
B)  more interested in discrimination than in making a profit. 
C)  unable to determine the link between discrimination and profitability. 
D)  more interested in making a profit than in discriminating against a particular group.

Exam 19: Earnings and Discrimination

A difference in wages between a highly-educated worker and a less-educated worker

Figure 19-1 -Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential.

Evidence from a study of the market for baseball players using 1960s data

A signaling theory of education suggests that educational attainment

The idea of paying workers an efficiency wage is that

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?

Sometimes workers earn higher wages through chance.

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

A computer is an example of human capital.

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?

Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by

Which of the following factors does not affect the value of a worker's marginal product?

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

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Which of the following variables related to a worker's wage are the most difficult to measure?

Evidence suggests that business owners are generally

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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters