Question 1

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Accepted Answer

A) True 
 B)False

Question 2

According to research by Bertrand and Mullainathan, which job applicants, those with "white" names or those with "black" names, received more calls from interested employers? What percent more?

Accepted Answer

The answer of According to research by Bertrand and Mullainathan,...

Question 3

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.

Question 4

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

Accepted Answer

A) women choose competitive environments more than men. 
B) women and men choose competitive environments equally. 
C) women choose competitive environments less than men. 
D) women are just as likely as men to have high-paying corporate jobs.

Question 5

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?

Accepted Answer

A) Wage differences persist because the political system has failed to enact laws to equalize wages among all groups. 
B) Wage differences exist because of past discrimination on the part of political bodies such as city councils and school boards. 
C) Wage differences exist because of the differences in the political views of the different groups. 
D) Wage differences exist because the political system is biased against paying compensating differentials.

Question 6

Technology is an important factor in explaining the high incomes of some athletes primarily because

Accepted Answer

A) technology accounts for differences in incomes within all occupations. 
B) technology makes it possible for very large numbers of people to watch athletes perform. 
C) technology improves the performance of athletes. 
D) technology requires human capital to use it efficiently.

Question 7

According to the signaling theory of education, better-educated workers

Accepted Answer

A) are likely to be high-ability workers. 
B) improve their marginal productivity through education. 
C) are in scarce supply in less developed countries. 
D) can only find low-skilled jobs due to technology.

Question 8

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Accepted Answer

A) men were better at adding than women. 
B) women chose the tournament payoff scheme more than men. 
C) men thought they won the four-player tournament part of the experiment more often than women thought they won the four-player tournament. 
D) the researchers demonstrated that women face significant wage discrimination in stock brokerages.

Question 9

Superstars arise in markets in which every customer in the market is able to enjoy the good supplied by the

Accepted Answer

The answer of Superstars arise in markets in which every...

Question 10

It is likely that efficiency wages will decrease employee effort.

Accepted Answer

A) True 
 B)False

Question 11

Explain why the following situation is likely to persist: soccer players in Europe are the highest paid athletes and in the US they are among the lowest paid athletes.

Accepted Answer

The answer of Explain why the following situation is likely...

Question 12

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

Accepted Answer

A) basing pay on experience. 
B) paying efficiency wages. 
C) practicing discrimination. 
D) rewarding increases in human capital.

Question 13

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

Question 14

When an employer pays the cost of educating a worker, it is likely that the employer

Accepted Answer

A) is demonstrating altruistic motives. 
B) is pursuing some objective other than profit-maximization. 
C) hopes to recapture his investment in the form of increased labor productivity. 
D) receives reimbursement from the government for the cost of the education.

Question 15

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Accepted Answer

A) a surplus of labor 
B) unemployment 
C) more unionized jobs 
D) All of the above are consequences of above-equilibrium wages.

Question 16

Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is

Accepted Answer

The answer of Most of the time, a profit motive...

Question 17

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A) human capital acquired through education 
B) human capital acquired through job experience 
C) compensating differentials 
D) All of the above can explain wage differences.

Question 18

Evidence of differences in the average wages of black workers compared to white workers

Accepted Answer

A) does not alone provide conclusive evidence of discrimination. 
B) clearly indicates differences in productivity between races. 
C) is seldom used to provide evidence of discriminatory bias. 
D) clearly indicates discrimination on the basis of race.

Question 19

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Accepted Answer

A) Courtney is beautiful and Nicole is not. 
B) Courtney is 40 years old and Nicole is 60 years old. 
C) Courtney works the night shift and Nicole works the day shift. 
D) Courtney attended on the job-training seminars which allows her to do tasks Nicole is not qualified for.

Question 20

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, what is the equilibrium wage and quantity of labor?

Accepted Answer

The answer of Figure 19-7 
-Refer to Figure 19-7. The...

Exam 19: Earnings and Discrimination