Question 1

Figure 19-4 
-Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Accepted Answer

A)   rise from $15 per hour to $18 per hour and 100 fewer people will be employed.
B)   rise from $15 per hour to $18 per hour and 200 more people will be employed.
C)   fall from $15 per hour to $12 per hour and 100 more people will be employed.
D)   fall from $18 per hour to $15 per hour and 200 fewer people will be employed.E) B) and D)
F) All of the above

Question 2

Which of the following is an example of a compensating differential?

Accepted Answer

A)   Two workers with different levels of on-the-job training earn different salaries.
B)   Two workers whose jobs entail different working conditions earn different salaries.
C)   Two workers whose jobs require different levels of technical expertise earn different salaries.
D)   Two workers with different levels of natural ability earn different salaries.E) B) and C)
F) A) and B)

Question 3

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Accepted Answer

5 to 10 pe...

Question 4

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.E) A) and B)
F) A) and C)

Question 5

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Accepted Answer

A)   discrimination against people from the west exists.
B)   people from the east receive compensating differentials.
C)   people from the west have lower levels of human capital.
D)   All of the above could be correct.E) A) and B)
F) C) and D)

Question 6

A worker association that bargains with employers over wages and working conditions is called

Accepted Answer

A)   a strike.
B)   an oligopoly.
C)   a firm.
D)   a union.E) All of the above
F) A) and C)

Question 7

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 differentialsE) All of the above
F) A) and B)

Question 8

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)   The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
B)   Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
C)   Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)   Discrimination by employers against a group of workers may artificially lower wages for that group.E) None of the above
F) A) and C)

Question 9

Other things equal, a particular job will likely pay a higher wage if it involves

Accepted Answer

A)   danger to the worker.
B)   personal enjoyment for the worker.
C)   intellectual stimulation for the worker.
D)   All of the above are correct.E) C) and D)
F) A) and D)

Question 10

Sometimes wages are set above the equilibrium level when

Accepted Answer

A)   garbage collectors earn higher wages than secretaries due to compensating differentials.
B)   accountants earn more than dental technicians due to higher educational requirements.
C)   movie superstars earn more than talented plumbers.
D)   unions negotiate higher wages by threatening to strike.E) A) and B)
F) A) and C)

Question 11

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

Accepted Answer

A)   a human capital differential.
B)   a compensating differential.
C)   signaling theory.
D)   the superstar phenomenon.E) A) and B)
F) C) and D)

Question 12

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

Accepted Answer

A)   a surplus of labor.
B)   no unemployment.
C)   an increase in the number of people employed.
D)   an decrease in the quantity of labor supplied.E) All of the above
F) None of the above

Question 13

Which theory states that education is correlated with natural ability?

Accepted Answer

The answer of Which theory states that education is correlated...

Question 14

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.E) C) and D)
F) A) and B)

Question 15

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Accepted Answer

A)   effort and natural ability.
B)   natural ability and years of experience.
C)   years of experience and job characteristics.
D)   race and job characteristics.E) A) and D)
F) None of the above

Question 16

In the presence of discrimination by customers,

Accepted Answer

A)   market forces nevertheless always work to prevent discriminatory wage differentials.
B)   discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits.
C)   discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination.
D)   discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government.E) A) and D)
F) B) and C)

Question 17

Efficiency wages may decrease employee turnover.

Accepted Answer

A) True 
 B)False

Question 18

The return to investment in human capital is observed

Accepted Answer

A)   only when workers are assigned identical tasks.
B)   in the wage differential between workers.
C)   in the high school dropout rate in inner-city urban school districts.
D)   in the low wages of educated factory workers.E) B) and D)
F) A) and B)

Question 19

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)   An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
B)   An employer is more likely to grant an interview to a person graduating from the local community college than from Yale.
C)   An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
D)   An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."E) A) and B)
F) A) and C)

Question 20

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

Accepted Answer

A)   human capital and compensating differentials
B)   human capital but not compensating differentials
C)   compensating differentials but not human capital
D)   neither human capital nor compensating differentialsE) All of the above
F) None of the above

Exam 19: Earnings and Discrimination

Other things equal, a particular job will likely pay a higher wage if it involves

Correct Answer
verified

Figure 19-4 -Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Correct Answer
verified

The return to investment in human capital is observed

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct Answer
verified

Efficiency wages may decrease employee turnover.

Correct Answer
verified

Sometimes wages are set above the equilibrium level when

Correct Answer
verified

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

Correct Answer
verified

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Correct Answer
verified

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

Correct Answer
verified

Which theory states that education is correlated with natural ability?

Correct Answer
verified

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answer
verified
5 to 10 pe...
View Answer

Correct Answer
verified

Which of the following is an example of a compensating differential?

Correct Answer
verified

A worker association that bargains with employers over wages and working conditions is called

Correct Answer
verified

Which of the following statements does not accurately describe the market for labor?

Correct Answer
verified

In the presence of discrimination by customers,

Correct Answer
verified

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

Correct Answer
verified

Which of the following represents an example of labor-market discrimination?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Other things equal, a particular job will likely pay a higher wage if it involves

Correct AnswerverifiedShow Answer

Figure 19-4 -Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will

Correct AnswerverifiedShow Answer

The return to investment in human capital is observed

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that

Correct AnswerverifiedShow Answer

Efficiency wages may decrease employee turnover.

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which theory states that education is correlated with natural ability?

Correct AnswerverifiedShow Answer

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answerverified5 to 10 pe...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of a compensating differential?

Correct AnswerverifiedShow Answer

A worker association that bargains with employers over wages and working conditions is called

Correct AnswerverifiedShow Answer

Which of the following statements does not accurately describe the market for labor?

Correct AnswerverifiedShow Answer

In the presence of discrimination by customers,

Correct AnswerverifiedShow Answer

When employers pay an efficiency wage above the market equilibrium wage, this will likely result in

Correct AnswerverifiedShow Answer

Which of the following represents an example of labor-market discrimination?

Correct AnswerverifiedShow Answer

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5 to 10 pe...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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