Question 1

According to the human-capital view, education

Accepted Answer

A)   has no effect on lifetime earnings.
B)   alters work ethic.
C)   enhances productivity.
D)   is an indicator of natural ability.E) None of the above
F) A) and C)

Question 2

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 3

In 1913, the Ford Motor Company decided to pay its employees $5 a day. This wage was significantly higher than what any other organization offered. Henry Ford believed that this wage would make his employees happier, increase their productivity, and lower employee turnover. Economists would say that Mr. Ford offered his employees

Accepted Answer

A)   a union.
B)   an efficiency wage.
C)   a diminishing rate of marginal return.
D)   a leisure wage.E) A) and B)
F) C) and D)

Question 4

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Accepted Answer

The answer of The theory of education that states firms...

Question 5

A prestigious private high school requires each of its teachers to have a Ph.D. in the subject they teach. This requirement is likely to

Accepted Answer

A)   increase the supply of teachers to this school.
B)   increase wages for teachers at the private school relative to those at public schools.
C)   decrease the marginal product of teachers at the private school.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 6

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Accepted Answer

The answer of According to economists Hamermesh and Biddle, how...

Question 7

James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?

Accepted Answer

A)   signaling theory
B)   human-capital theory
C)   compensating-differentials theory
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 8

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) All of the above
F) B) and D)

Question 9

John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital.

Accepted Answer

A) True 
 B)False

Question 10

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 self­esteem but not her wages.E) B) and C)
F) None of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 D)
F) A) and C)

Question 13

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 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)   75% more than men with a high school education.
D)   90% more than men with a high school education.E) None of the above
F) A) and B)

Question 14

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Accepted Answer

A)   discriminatory wage practice.
B)   compensating differential.
C)   wage inequity.
D)   a market inefficiency.E) A) and B)
F) All of the above

Question 15

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Accepted Answer

A)   risen as the demand for skilled labor has increased relative to the demand for unskilled labor.
B)   risen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
C)   fallen as the demand for skilled labor has increased relative to the demand for unskilled labor.
D)   fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.E) B) and C)
F) C) and D)

Question 16

Which of the following is least likely to be the reason women are underrepresented in the economics profession?

Accepted Answer

A)   labor market discrimination
B)   the choice of women to select other occupations
C)   cultural bias in primary and secondary education
D)   the inability of women to solve problems in economicsE) C) and D)
F) B) and C)

Question 17

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 18

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Accepted Answer

A) True 
 B)False

Question 19

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A)   Restaurant customers preferred to be waited on by white waitresses rather than black waitresses.
B)   Black basketball players earned more than white basketball players.
C)   Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal.
D)   Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.E) All of the above
F) C) and D)

Question 20

Professional underwater divers are known to have high wages and work an average of only 20 hours per week. Which of the following would push the divers' wages higher?

Accepted Answer

A)   The job is simple.
B)   The job is fun.
C)   The job is very dangerous.
D)   The job does not require specialized training.E) None of the above
F) All of the above

Exam 19: Earnings and Discrimination

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Correct Answer
verified

John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital.

Correct Answer
verified

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Correct Answer
verified

Correct Answer
verified

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

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

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Correct Answer
verified

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

Correct Answer
verified

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 least likely to be the reason women are underrepresented in the economics profession?

Correct Answer
verified

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

Correct Answer
verified

According to the human-capital view, education

Correct Answer
verified

A prestigious private high school requires each of its teachers to have a Ph.D. in the subject they teach. This requirement is likely to

Correct Answer
verified

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Correct Answer
verified

Human capital is

Correct Answer
verified

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Correct Answer
verified

Professional underwater divers are known to have high wages and work an average of only 20 hours per week. Which of the following would push the divers' wages higher?

Correct Answer
verified

James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?

Correct Answer
verified

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct Answer
verified

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Correct Answer
verified

Exam 19: Earnings and Discrimination

When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

Correct AnswerverifiedShow Answer

John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital.

Correct AnswerverifiedShow Answer

According to economists Hamermesh and Biddle, how much more do people who are deemed more attractive than average earn?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Between 1975 and 2011, the wage gap between men with a high school education and men with a college education increased. In particular, in 2011 men with a college degree earned about

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

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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 least likely to be the reason women are underrepresented in the economics profession?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the human-capital view, education

Correct AnswerverifiedShow Answer

A prestigious private high school requires each of its teachers to have a Ph.D. in the subject they teach. This requirement is likely to

Correct AnswerverifiedShow Answer

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Since people get sick at all hours of the day, some nurses who work in hospitals are required to work the night shift. In most cases, the nurses who work the night shift earn a higher hourly wage for the same work as the nurses who work the day shift. This difference in pay is referred to as a

Correct AnswerverifiedShow Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours per week. Which of the following would push the divers' wages higher?

Correct AnswerverifiedShow Answer

James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?

Correct AnswerverifiedShow Answer

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct AnswerverifiedShow Answer

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Correct AnswerverifiedShow Answer

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attitudes ...
View Answer

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