Question 1

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

Accepted Answer

A)  increased. 
B)  decreased. 
C)  remained constant. 
D)  first increased by a small percent, then decreased by a large percent. 
A)  increased. 
B)  decreased. 
C)  remained constant. 
D)  first increased by a small percent, then decreased by a large percent.

Question 2

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

Accepted Answer

A)  marginal productivity in all occupations has a physical dimension. 
B)  in some occupations, physical attractiveness of workers may enhance the value of their marginal product. 
C)  beauty acts as an implicit signal of innate intelligence. 
D)  beautiful people are likely to reflect "good breeding." 
A)  marginal productivity in all occupations has a physical dimension. 
B)  in some occupations, physical attractiveness of workers may enhance the value of their marginal product. 
C)  beauty acts as an implicit signal of innate intelligence. 
D)  beautiful people are likely to reflect "good breeding."

Question 3

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

Accepted Answer

A)  black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. 
B)  black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. 
C)  job applicants with white names received 50 percent more phone calls from interested employers. 
D)  job applicants with white names received 7 percent more phone calls from interested employers. 
A)  black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. 
B)  black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. 
C)  job applicants with white names received 50 percent more phone calls from interested employers. 
D)  job applicants with white names received 7 percent more phone calls from interested employers.

Question 4

Figure 19-7  
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. If the current labor demand is D1 and the current labor supply is S1, when a union is established in this market and succeeds in raising the wage to $18 per hour, what is the change in the number of workers employed?

Accepted Answer

100 fewer

Question 5

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Accepted Answer

A)  coal mining is a declining industry. 
B)  coal mining jobs are potentially more dangerous than jobs with comparable education requirements. 
C)  all coal mines use nonunion labor. 
D)  coal imports are rising. 
A)  coal mining is a declining industry. 
B)  coal mining jobs are potentially more dangerous than jobs with comparable education requirements. 
C)  all coal mines use nonunion labor. 
D)  coal imports are rising.

Question 6

Economists found evidence of discrimination in each of the following markets except

Accepted Answer

A)  1960s baseball games 
B)  baseball cards 
C)  live basketball games in the 1980s 
D)  current era baseball games 
A)  1960s baseball games 
B)  baseball cards 
C)  live basketball games in the 1980s 
D)  current era baseball games

Question 7

According to the Hamermesh and Biddle study, people deemed more attractive than average earn

Accepted Answer

A)  30-40 percent more than unattractive people. 
B)  about 5 percent more than average looking people. 
C)  the same as average looking people and 15-20 percent more than unattractive people. 
D)  25 percent more than average looking people and 50 percent more than unattractive people. 
A)  30-40 percent more than unattractive people. 
B)  about 5 percent more than average looking people. 
C)  the same as average looking people and 15-20 percent more than unattractive people. 
D)  25 percent more than average looking people and 50 percent more than unattractive people.

Question 8

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

Accepted Answer

A)  relatively high. 
B)  relatively low. 
C)  determined solely by factors that affect demand. 
D)  determined outside the domain of economic theory. 
A)  relatively high. 
B)  relatively low. 
C)  determined solely by factors that affect demand. 
D)  determined outside the domain of economic theory.

Question 9

A 1990 study of the market for collectable baseball cards suggested

Accepted Answer

A)  there was no evidence of price discrimination on the basis of player position (hitter versus pitcher). 
B)  markets in which the product price is low are not typically characterized by consumer-driven race discrimination. 
C)  cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players. 
D)  cards for black players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable white players. 
A)  there was no evidence of price discrimination on the basis of player position (hitter versus pitcher). 
B)  markets in which the product price is low are not typically characterized by consumer-driven race discrimination. 
C)  cards for white players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable black players. 
D)  cards for black players (both hitters and pitchers) were 10 to 13 percent higher than those for comparable white players.

Question 10

Men and women tend to choose different types of occupations, and so

Accepted Answer

A)  a source of wage differences between men and women is differences in human capital. 
B)  a source of wage differences between men and women is compensating differentials. 
C)  the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate. 
D)  we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past. 
A)  a source of wage differences between men and women is differences in human capital. 
B)  a source of wage differences between men and women is compensating differentials. 
C)  the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate. 
D)  we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past.

Question 11

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Accepted Answer

A)  Dave's job is less dangerous. 
B)  of efficiency wages. 
C)  of education as a signal. 
D)  Dave has more human capital. 
A)  Dave's job is less dangerous. 
B)  of efficiency wages. 
C)  of education as a signal. 
D)  Dave has more human capital.

Question 12

The wage gap between skilled and unskilled worker has

Accepted Answer

A)  risen; some economists argue that this is partly due to increased international trade. 
B)  risen; some economists argue that this is partly due to decreased international trade. 
C)  fallen; some economists argue that this is partly due to increased international trade. 
D)  fallen; some economists argue that this is partly due to decreased international trade. 
A)  risen; some economists argue that this is partly due to increased international trade. 
B)  risen; some economists argue that this is partly due to decreased international trade. 
C)  fallen; some economists argue that this is partly due to increased international trade. 
D)  fallen; some economists argue that this is partly due to decreased international trade.

Question 13

Which of the following statements is correct?

Accepted Answer

A)  The human-capital theory of education could be called a productivity-enhancing theory. 
B)  The human-capital theory of education could be called a productivity-revealing theory. 
C)  The signaling theory of education could be called a productivity-enhancing theory. 
D)  The signaling theory of education has been disproven by a number of prominent economists. 
A)  The human-capital theory of education could be called a productivity-enhancing theory. 
B)  The human-capital theory of education could be called a productivity-revealing theory. 
C)  The signaling theory of education could be called a productivity-enhancing theory. 
D)  The signaling theory of education has been disproven by a number of prominent economists.

Question 14

Which of the following is not an example of human capital for a college economics professor?

Accepted Answer

A)  years of experience 
B)  a doctorate in economics 
C)  chalk 
D)  what the professor has learned from seminar courses on effective teaching methods 
A)  years of experience 
B)  a doctorate in economics 
C)  chalk 
D)  what the professor has learned from seminar courses on effective teaching methods

Question 15

Over the last several years, the earnings gap between workers with college degrees and workers with high school degrees has

Accepted Answer

A)  remained roughly constant for both men and women. 
B)  widened for both men and women. 
C)  widened for men and narrowed for women. 
D)  narrowed for men and widened for women. 
A)  remained roughly constant for both men and women. 
B)  widened for both men and women. 
C)  widened for men and narrowed for women. 
D)  narrowed for men and widened for women.

Question 16

Once during a U.S. presidential campaign, a lobbyist for a prominent national women's organization made the claim that women in the United States earn $0.60 for every $1.00 earned by a man. A reporter, who was prepared for this statement, asked the lobbyist why wages paid to the organization's secretarial staff (all of whom were women) were significantly below the national average if they were truly interested in raising the rates of compensation for women. If you were the lobbyist, how would you have answered this question? Do you think your answer is convincing? Explain.

Accepted Answer

The lobbyist would likely respond by cit

Question 17

Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect

Accepted Answer

A)  discrimination. 
B)  differences in human capital. 
C)  differences in signaling. 
D)  chance. 
A)  discrimination. 
B)  differences in human capital. 
C)  differences in signaling. 
D)  chance.

Question 18

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

Accepted Answer

A)  has more education. 
B)  is willing to work the night shift. 
C)  is a man, whereas worker B is a woman. 
D)  has better performance reviews, indicating higher productivity. 
A)  has more education. 
B)  is willing to work the night shift. 
C)  is a man, whereas worker B is a woman. 
D)  has better performance reviews, indicating higher productivity.

Question 19

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A)  is unlikely to find evidence of wage differentials. 
B)  can provide strong evidence of labor market discrimination. 
C)  is likely to misinterpret apparent evidence of labor market discrimination. 
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers. 
A)  is unlikely to find evidence of wage differentials. 
B)  can provide strong evidence of labor market discrimination. 
C)  is likely to misinterpret apparent evidence of labor market discrimination. 
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers.

Question 20

In general, the higher a person's education level,

Accepted Answer

A)  the higher the person's earnings. 
B)  the more physically attractive the person is likely to be. 
C)  the more socially outgoing the person is likely to be. 
D)  All of the above are correct. 
A)  the higher the person's earnings. 
B)  the more physically attractive the person is likely to be. 
C)  the more socially outgoing the person is likely to be. 
D)  All of the above are correct.

Exam 19: Earnings and Discrimination

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

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

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Economists found evidence of discrimination in each of the following markets except

According to the Hamermesh and Biddle study, people deemed more attractive than average earn

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

A 1990 study of the market for collectable baseball cards suggested

Men and women tend to choose different types of occupations, and so

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

The wage gap between skilled and unskilled worker has

Which of the following statements is correct?

Which of the following is not an example of human capital for a college economics professor?

Over the last several years, the earnings gap between workers with college degrees and workers with high school degrees has

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

Empirical work that does not account for differences in the productivity of workers

In general, the higher a person's education level,

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

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