Question 1

Consumers are often a primary source of discrimination in labor markets.

Accepted Answer

A) True 
 B)False

Question 2

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Accepted Answer

A)   chance.
B)   natural ability.
C)   the fact that the players' union is strong.
D)   a compensating differential.E) None of the above
F) C) and D)

Question 3

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) C) and D)
F) B) and C)

Question 4

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)   seminar courses the professor attends on effective teaching methodsE) A) and D)
F) None of the above

Question 5

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Accepted Answer

A)   human-capital theory of education.
B)   signaling theory of education.
C)   principle that education reduces marginal productivity.
D)   principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.E) A) and B)
F) C) and D)

Question 6

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Accepted Answer

A)   employer-matching 401k retirement plan contributions
B)   tuition reimbursement for workers who take college classes
C)   on-site day care
D)   health insuranceE) All of the above
F) B) and C)

Question 7

Which of the following would be considered an investment in human capital?

Accepted Answer

A)   education
B)   a teacher's blackboard
C)   the purchase of a new computer to enhance labor productivity
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 8

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 job in Africa has a lot of job satisfaction, the wage will be higher.
B)   if the job in Africa has a lot of job satisfaction, the wage will be lower.
C)   if the job cleaning motel rooms is miserable work, the wage will be lower.
D)   if the job cleaning motel rooms is not miserable work, the wage will be higher.E) A) and B)
F) None of the above

Question 9

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Accepted Answer

A)   to reduce employee turnover.
B)   to prevent unions from recruiting members.
C)   to reduce the need for minimum wage laws.
D)   to increase the demand for better-skilled workers.E) A) and B)
F) C) and D)

Question 10

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Accepted Answer

A)   laws that required such segregation.
B)   long-standing southern traditions about which the law was silent.
C)   streetcar firms trying to maximize profits.
D)   streetcar firms trying to minimize costs.E) C) and D)
F) B) and C)

Question 11

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Accepted Answer

A)   lower due to a higher supply of workers in that group.
B)   lower due to a lower demand for workers in that group.
C)   higher due to a lower supply of workers in that group.
D)   higher due to a higher demand for workers in that group.E) A) and B)
F) B) and C)

Question 12

Jake and Harry each have 130 hours of college credit from Impressive University.Each has 30 hours of economics.Jake has a bachelor's degree,while Harry is 3 credits short of required physical education classes and therefore does not have a degree.Each of them has one year of experience as a market analyst for ABC Company.Assuming that the physical education class would not enhance Harry's job performance,if Jake earns a higher salary than Harry,the ABC Company may subscribe to the

Accepted Answer

A)   human capital theory.
B)   discrimination theory.
C)   compensating differential theory.
D)   signaling theory.E) C) and D)
F) None of the above

Question 13

Labor-market discrimination is evident when

Accepted Answer

A)   wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity.
B)   wage rates differ for similar jobs.
C)   consumers prefer to shop at some stores, and not at others.
D)   wages reflect workers' human capital.E) C) and D)
F) A) and B)

Question 14

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

Accepted Answer

A)   age.
B)   years of experience.
C)   years of education.
D)   All of the above are forms of discrimination.E) A) and B)
F) None of the above

Question 15

A compensating differential is

Accepted Answer

A)   a difference in pay due to nonmonetary characteristics of jobs.
B)   an high wage paid by employers to entice workers to be more productive.
C)   the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
D)   equivalent to a union wage.E) B) and C)
F) C) and D)

Question 16

If people with blue eyes earn more than people with brown eyes,we have proof of discrimination against people with brown eyes.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of wages,educational attainment,and gender?

Accepted Answer

A)   Male workers are compensated for attending college, while female workers generally are not.
B)   Female workers are compensated for attending college, while male workers generally are not.
C)   Both genders receive a higher wage for attending college.
D)   Neither gender receives a higher wage for attending college.E) None of the above
F) B) and D)

Question 18

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Accepted Answer

A)   10% more than men with a high school education.
B)   25% more than men with a high school education.
C)   63% more than men with a high school education.
D)   88% more than men with a high school education.E) A) and B)
F) A) and C)

Question 19

Job A is easy,fun,and safe.Job B is hard,dull,and dangerous.All else equal,we would expect Job A to pay

Accepted Answer

A)   higher wages than Job B because the labor supplied for Job B will be greater.
B)   lower wages than Job B because the labor supplied for Job B will be greater.
C)   higher wages than Job B because the labor supplied for Job A will be greater.
D)   lower wages than Job B because the labor supplied for Job A will be greater.E) None of the above
F) All of the above

Question 20

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination.

Labor-market discrimination is evident when

Correct Answer
verified

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Correct Answer
verified

If people with blue eyes earn more than people with brown eyes,we have proof of discrimination against people with brown eyes.

Correct Answer
verified

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Correct Answer
verified

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

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

Correct Answer
verified

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Correct Answer
verified

Which of the following statements is true of wages,educational attainment,and gender?

Correct Answer
verified

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct Answer
verified

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Correct Answer
verified

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

Correct Answer
verified

A compensating differential is

Correct Answer
verified

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

Correct Answer
verified

Consumers are often a primary source of discrimination in labor markets.

Correct Answer
verified

Job A is easy,fun,and safe.Job B is hard,dull,and dangerous.All else equal,we would expect Job A to pay

Correct Answer
verified

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Correct Answer
verified

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Correct Answer
verified

Which of the following would be considered an investment in human capital?

Correct Answer
verified

Correct Answer
verified

Exam 19: Earnings and Discrimination.

Labor-market discrimination is evident when

Correct AnswerverifiedShow Answer

The theory of efficiency wages suggests that firms may pay above-equilibrium wages

Correct AnswerverifiedShow Answer

If people with blue eyes earn more than people with brown eyes,we have proof of discrimination against people with brown eyes.

Correct AnswerverifiedShow Answer

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Correct AnswerverifiedShow Answer

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

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

Correct AnswerverifiedShow Answer

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Correct AnswerverifiedShow Answer

Which of the following statements is true of wages,educational attainment,and gender?

Correct AnswerverifiedShow Answer

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct AnswerverifiedShow Answer

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) ,they are providing evidence in support of the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A compensating differential is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consumers are often a primary source of discrimination in labor markets.

Correct AnswerverifiedShow Answer

Job A is easy,fun,and safe.Job B is hard,dull,and dangerous.All else equal,we would expect Job A to pay

Correct AnswerverifiedShow Answer

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Correct AnswerverifiedShow Answer

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Correct AnswerverifiedShow Answer

Which of the following would be considered an investment in human capital?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified