Question 1

By definition, there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Accepted Answer

A)  race, ethnic group, sex, age, or other personal characteristics.
B)  qualifications, experience, or job preferences.
C)  levels of human capital.
D)  All of the above are correct.E) A) and C)
F) C) and D)

Question 2

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Accepted Answer

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

Question 3

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Accepted Answer

A)  work effort.
B)  loyalty to the firm.
C)  years of schooling.
D)  years of experience.E) B) and D)
F) A) and D)

Question 4

Evidence of differences in average wages of women compared to men

Accepted Answer

A)  clearly illustrates differences in productivity between genders.
B)  provides conclusive evidence of discrimination on the basis of gender.
C)  is seldom used to provide evidence of discriminatory bias.
D)  does not provide conclusive evidence of discrimination.E) All of the above
F) None of the above

Question 5

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Accepted Answer

A)  Every customer in the market wants to enjoy the good supplied by the best producer.
B)  Technology makes it possible for the best producer to supply every customer at low cost.
C)  Customers are willing to pay more for entertainment than other services.
D)  Both a and b are correct.E) A) and D)
F) B) and D)

Question 6

Figure 19-6​ 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $20.00. Which of the following statements about the impact of the union's formation on labor hours demanded is true?

Accepted Answer

A)  Labor hours demanded by widget firms will decrease by 20 hours.
B)  Labor hours demanded by widget firms will decrease by 30 hours.
C)  Labor hours demanded by widget firms will increase by 20 hours.
D)  Labor hours demanded by widget firms will increase by 30 hours.E) C) and D)
F) A) and B)

Question 7

Which of the following helps to explain the differences in earnings in the United States?

Accepted Answer

A)  ability, effort, and chance
B)  compensating differentials
C)  physical attractiveness
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 8

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Accepted Answer

A)  virtually none of the variation in wages in our economy.
B)  some, but less than 50 percent of the variation in wages in our economy.
C)  about 75 percent of the variation in wages in our economy.
D)  almost all of the variation in wages in our economy.E) B) and C)
F) C) and D)

Question 9

Human capital is

Accepted Answer

A)  a stock of equipment and structures.
B)  the result of investments workers make in themselves such as education.
C)  a difference in wages that arises to offset the nonmonetary characteristics of different jobs.
D)  a characteristic that affects a worker's self-esteem but not her wages.E) B) and D)
F) B) and C)

Question 10

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

Question 11

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Accepted Answer

A)  will increase only if the company can increase the price of its product.
B)  is likely to increase.
C)  is likely to decrease.
D)  will not change.E) All of the above
F) A) and B)

Question 12

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Accepted Answer

A)  The employer will be just as efficient as a nondiscriminating employer.
B)  The employer will face higher costs than firms that focus only on maximizing profits.
C)  The employer will immediately go out of business because discrimination is illegal.
D)  The employer will face union strikes.E) A) and C)
F) None of the above

Question 14

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Accepted Answer

A)  Albert, who prefers not to socialize and works at home by himself
B)  Amy, whose job provides little intellectual and personal satisfaction
C)  Antoinette, whose preference is to avoid dangerous work but works as a firefighter
D)  Arnold, who works the night shift but would prefer to work during the day and sleep at nightE) All of the above
F) C) and D)

Question 15

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Accepted Answer

A)  compensating differentials.
B)  the increased recognition that a larger stock of human capital usually leads to higher earnings.
C)  the decreasing importance of labor unions.
D)  the increasing importance of international trade.E) A) and C)
F) C) and D)

Question 16

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

Question 17

Scenario 19-7
Mark works full time at a large accounting firm. Mark has been at the firm for four years but has not been given a promotion, even though newer employees have already been promoted. Mark believes he is a victim of labor-market discrimination, and threatens to hire a lawyer to sue the company.
​
-Refer to Scenario 19-7. Which of the following would weaken Mark's case against his employer?

Accepted Answer

A)  Mark is more productive than other newly-hired accountants who were promoted before he was.
B)  Mark works more than any other accountant in the firm.
C)  Newly hired employees who were promoted before Mark had extensive previous accounting experience.
D)  Newly hired employees who were promoted before Mark are more well-liked by other accountants in the firm.E) C) and D)
F) B) and C)

Question 18

What is the term for offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics?

Accepted Answer

The answer of What is the term for offering different...

Question 19

Difference in wages can be explained by differences in

Accepted Answer

A)  job characteristics and worker characteristics.
B)  job characteristics but not worker characteristics.
C)  worker characteristics but not job characteristics.
D)  neither worker characteristics or job characteristics.E) A) and C)
F) A) and D)

Question 20

Economists who study labor markets have documented

Accepted Answer

A)  a general decline in the wages of college graduates over the last decade.
B)  an increasing trend in U.S. labor markets for employers to pay all costs of education and training.
C)  a decrease in the earnings gap between low-skill and high-skill workers over the past two decades.
D)  an increase in the earnings gap between low-skill and high-skill workers over the past two decades.E) A) and B)
F) C) and D)

Exam 19: Earnings and Discrimination

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Correct Answer
verified

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Correct Answer
verified

Which of the following helps to explain the differences in earnings in the United States?

Correct Answer
verified

Correct Answer
verified

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Correct Answer
verified

What is the term for offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics?

Correct Answer
verified

The idea of paying workers an efficiency wage is that

Correct Answer
verified

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Correct Answer
verified

Human capital is

Correct Answer
verified

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Correct Answer
verified

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct Answer
verified

By definition, there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Correct Answer
verified

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Difference in wages can be explained by differences in

Correct Answer
verified

Evidence of differences in average wages of women compared to men

Correct Answer
verified

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Correct Answer
verified

Economists who study labor markets have documented

Correct Answer
verified

Exam 19: Earnings and Discrimination

Studies of wages by labor economists indicate that measurable variables such as age, job characteristics, years of education, and years of experience account for

Correct AnswerverifiedShow Answer

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Correct AnswerverifiedShow Answer

Which of the following helps to explain the differences in earnings in the United States?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Correct AnswerverifiedShow Answer

What is the term for offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics?

Correct AnswerverifiedShow Answer

The idea of paying workers an efficiency wage is that

Correct AnswerverifiedShow Answer

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

A compensation scheme that pays salespeople a percentage of the sales they make is attempting to reward

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, if wages adjust to balance labor supply and labor demand, what are the wage and quantity of labor?

Correct AnswerverifiedShow Answer

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct AnswerverifiedShow Answer

By definition, there is discrimination when the marketplace offers different opportunities to similar individuals who differ only by

Correct AnswerverifiedShow Answer

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Difference in wages can be explained by differences in

Correct AnswerverifiedShow Answer

Evidence of differences in average wages of women compared to men

Correct AnswerverifiedShow Answer

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Correct AnswerverifiedShow Answer

Economists who study labor markets have documented

Correct AnswerverifiedShow 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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