Question 1

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Accepted Answer

The theory of signaling suggests that th...

Question 2

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 3

Human capital is

Accepted Answer

A)   an important determinant of wages, but it does not affect the production of goods and services.
B)   an important determinant of wages, and it affects the production of goods and services.
C)   a specific type of physical capital made by humans rather than machines.
D)   very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.E) A) and C)
F) C) and D)

Question 4

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

Accepted Answer

A)   the marginal product of labor.
B)   the marginal product of capital.
C)   diminishing marginal returns.
D)   a compensating differential.E) A) and B)
F) A) and C)

Question 5

Which of the following is not an example of a compensating differential?

Accepted Answer

A)   paying workers who do dull, boring work higher wages than workers who do fun, interesting work, all else equal
B)   paying workers who work on the night shift higher wages than workers who work the day shift, all else equal
C)   paying workers who do more dangerous work higher wages than workers who do less dangerous work, all else equal
D)   paying workers with PhDs higher wages than workers with BAs, all else equalE) A) and C)
F) A) and B)

Question 6

A signaling theory of education suggests that educational attainment

Accepted Answer

A)   is a signal of high marginal productivity.
B)   is correlated with natural ability.
C)   increases the productivity of low-ability workers.
D)   Both a and b are correct.E) All of the above
F) C) and D)

Question 7

Business owners who care only about making money are

Accepted Answer

A)   likely to discriminate against certain groups of workers.
B)   likely to be replaced by discriminating businesses.
C)   more concerned about racial discrimination than gender discrimination.
D)   at an advantage when competing against those who practice discrimination.E) A) and B)
F) B) and C)

Question 8

Which of the following professionals is most likely to generate the income of a superstar?

Accepted Answer

A)   the best teacher
B)   the best dentist
C)   the best guitar player
D)   the best airplane pilotE) C) and D)
F) A) and D)

Question 9

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

Accepted Answer

A)   human capital
B)   discrimination
C)   unions
D)   All of the above could explain wage differences among groups.E) All of the above
F) B) and D)

Question 10

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Accepted Answer

A)   There is a cost advantage for firms that do not discriminate.
B)   Workers who are victims of discrimination will eventually drop out of the labor market.
C)   Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
D)   Discrimination cannot exist in markets.E) C) and D)
F) None of the above

Question 11

The most important type of human capital is

Accepted Answer

The answer of The most important type of human capital...

Question 12

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 13

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 14

Economists typically explain occupational differences between men and women through preferences, ability, and discrimination. What additional factor did economists Muriel Niederle and Lise Vesterlund add to this list?

Accepted Answer

attitudes ...

Question 15

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Accepted Answer

A)   the demand for female labor to be lower than the demand for male labor.
B)   the demand for female labor to be higher than the demand for male labor.
C)   the supply of female labor to be lower than the demand for male labor.
D)   the supply of female labor to be higher than the supply of male labor.E) A) and C)
F) A) and B)

Question 16

White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar (i)  years of work experience.
(ii)  educational attainments.
(iii)  occupations.
(iv)  child care responsibilities.

Accepted Answer

A)   (i)  and (ii)  only
B)   (iii)  and (iv)  only
C)   (ii)  only
D)   (i) , (ii) , (iii) , and (iv) E) A) and B)
F) All of the above

Question 17

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Accepted Answer

The answer of Chris just completed his college degree from...

Question 18

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

Question 19

Discrimination is usually not a profit-maximizing strategy.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an example of customer discrimination?

Accepted Answer

A)   A foreign government prevents women from legally working as teachers.
B)   White theater goers prefer to watch movies with white stars rather than black stars.
C)   Customers prefer more experienced lawyers over less experienced ones.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Exam 19: Earnings and Discrimination

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

Correct Answer
verified

Which of the following professionals is most likely to generate the income of a superstar?

Correct Answer
verified

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Correct Answer
verified

A signaling theory of education suggests that educational attainment

Correct Answer
verified

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?

Correct Answer
verified

Human capital is

Correct Answer
verified

The most important type of human capital is

Correct Answer
verified

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

Correct Answer
verified

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

Correct Answer
verified

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Correct Answer
verified

Discrimination is usually not a profit-maximizing strategy.

Correct Answer
verified

Economists typically explain occupational differences between men and women through preferences, ability, and discrimination. What additional factor did economists Muriel Niederle and Lise Vesterlund add to this list?

Correct Answer
verified
attitudes ...
View Answer

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Correct Answer
verified

Which of the following is an example of customer discrimination?

Correct Answer
verified

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

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

Correct Answer
verified

Which of the following is not an example of a compensating differential?

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

Business owners who care only about making money are

Correct Answer
verified

Correct Answer
verified

Exam 19: Earnings and Discrimination

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

Correct AnswerverifiedShow Answer

Which of the following professionals is most likely to generate the income of a superstar?

Correct AnswerverifiedShow Answer

Why would a wage differential due to discrimination in hiring be unlikely to persist in a competitive labor market?

Correct AnswerverifiedShow Answer

A signaling theory of education suggests that educational attainment

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

The most important type of human capital is

Correct AnswerverifiedShow Answer

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Correct AnswerverifiedShow Answer

Discrimination is usually not a profit-maximizing strategy.

Correct AnswerverifiedShow Answer

Economists typically explain occupational differences between men and women through preferences, ability, and discrimination. What additional factor did economists Muriel Niederle and Lise Vesterlund add to this list?

Correct Answerverifiedattitudes ...View AnswerShow Answer

Assume men, on balance, have lower amounts of human capital than women have. Then we would expect

Correct AnswerverifiedShow Answer

Which of the following is an example of customer discrimination?

Correct AnswerverifiedShow Answer

Explain the theory that education acts as a signaling device. How does this contrast with the theory of education as an investment in human capital?

Correct AnswerverifiedThe theory of signaling suggests that th...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not an example of a compensating differential?

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

Business owners who care only about making money are

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
attitudes ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified