Question 1

Technology is an important factor in explaining the high incomes of superstars because

Accepted Answer

A)   technology accounts for differences in incomes within all occupations.
B)   technology makes it possible for the best producer to supply every customer at low cost.
C)   technology that can limit access to the superstars is available.
D)   only technologically-literate superstars can earn super incomes.E) A) and B)
F) All of the above

Question 2

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Joan is a white 23-year-old female,and Marcia is a black 23-year-old female.Both Joan and Marica are economics majors,and they graduated from the same college in the same year with the same GPA.Joan and Marcia both got jobs at a brokerage firm after graduating from college.They both work equally hard.Joan earns $38,000 a year,and Marcia earns $30,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Joan has less human capital than Marcia.
B)   Joan receives a compensating wage differential that Marcia does not.
C)   Joan has been discriminated against because she is white.
D)   Marcia has been discriminated against because she is black.E) A) and B)
F) A) and D)

Question 5

A difference in wages that reflects differences in the nonpay features of two jobs is called

Accepted Answer

A)   a compensating differential.
B)   a wage adjustment.
C)   an efficiency wage.
D)   a minimum wage.E) All of the above
F) C) and D)

Question 6

Figure 19-1 
-Refer to Figure 19-1.The figure shows labor demand and labor supply in a non-unionized labor market.If the current labor demand is D1 and the current labor supply is S1,when a union is established in this market and succeeds in raising the wage to $18 per hour,what is the change in the number of workers employed?

Accepted Answer

100 fewer ...

Question 7

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Accepted Answer

A)   rise,and the wages of unskilled labor in Hapland will fall.
B)   fall,and the wages of unskilled labor in Hapland will rise.
C)   rise,and the wages of unskilled labor in Hapland will rise.
D)   fall,and the wages of unskilled labor in Hapland will fall.E) A) and C)
F) A) and D)

Question 8

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

Question 9

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Accepted Answer

compensati...

Question 10

Regarding wage differences among various groups of workers - blacks and whites,men and women,etc.- most economists believe that

Accepted Answer

A)   no such differences are evident from the available data.
B)   most of the differences are attributable to discrimination.
C)   some of the wage differences are attributable to discrimination,but there is disagreement about how much.
D)   none of the differences are attributable to discrimination.E) A) and C)
F) B) and C)

Question 11

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Accepted Answer

A) True 
 B)False

Question 12

Figure 19-2 
-Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Accepted Answer

A)   supply of 3,000 workers.
B)   demand of 7,000 workers.
C)   supply of 4,000 workers.
D)   supply of 7,000 workers.E) C) and D)
F) None of the above

Question 13

In the signaling theory of education,

Accepted Answer

A)   schooling itself does not lead to more productive workers.
B)   chance plays more of a role than in the human-capital theory.
C)   schooling enhances worker productivity.
D)   compensating differentials do not matter.E) None of the above
F) C) and D)

Question 14

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Accepted Answer

A)   the superstar phenomenon.
B)   the theory of efficiency wages.
C)   compensating differentials.
D)   differences in educational attainment.E) B) and D)
F) A) and C)

Question 15

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Accepted Answer

A) True 
 B)False

Question 16

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience,education,lifet...

Question 17

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) All of the above
F) A) and C)

Question 18

Discrimination is an emotionally charged issue that is impossible to study objectively.

Accepted Answer

A) True 
 B)False

Question 19

For a "superstar" to emerge,it must be the case that

Accepted Answer

A)   it is possible to supply the good or service that the superstar produces at low cost to every customer.
B)   some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar.
C)   the superstar has a natural monopoly on his or her good or service.
D)   the superstar is willing to settle for a level of pay that is less than the value of his marginal product.E) A) and D)
F) A) and C)

Question 20

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Accepted Answer

A)   streetcar firms.
B)   government officials.
C)   Sherman antitrust laws.
D)   consumers.E) B) and C)
F) B) and D)

Exam 19: Earnings and Discrimination

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct Answer
verified

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct Answer
verified

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct Answer
verified
Job experience,education,lifet...
View Answer

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Correct Answer
verified
compensati...
View Answer

For a "superstar" to emerge,it must be the case that

Correct Answer
verified

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Correct Answer
verified

A difference in wages that reflects differences in the nonpay features of two jobs is called

Correct Answer
verified

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Correct Answer
verified

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct Answer
verified

Regarding wage differences among various groups of workers - blacks and whites,men and women,etc.- most economists believe that

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

Correct Answer
verified
100 fewer ...
View Answer

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

Correct Answer
verified

Technology is an important factor in explaining the high incomes of superstars because

Correct Answer
verified

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Correct Answer
verified

In the signaling theory of education,

Correct Answer
verified

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Correct Answer
verified

Exam 19: Earnings and Discrimination

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct AnswerverifiedShow Answer

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market.We deviate from that assumption,however,when we consider

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct AnswerverifiedShow Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct AnswerverifiedJob experience,education,lifet...View AnswerShow Answer

Workers who work the night shift at factories are paid more than similar workers who work the day shift due to a

Correct Answerverifiedcompensati...View AnswerShow Answer

For a "superstar" to emerge,it must be the case that

Correct AnswerverifiedShow Answer

Figure 19-2 -Refer to Figure 19-2.This figure depicts labor demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20,then there will be an excess

Correct AnswerverifiedShow Answer

A difference in wages that reflects differences in the nonpay features of two jobs is called

Correct AnswerverifiedShow Answer

One reason why better-looking workers may have higher earnings is that physical attractiveness may enhance a worker's productivity for certain jobs,especially for those workers who deal with the public.

Correct AnswerverifiedShow Answer

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct AnswerverifiedShow Answer

Regarding wage differences among various groups of workers - blacks and whites,men and women,etc.- most economists believe that

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

Correct Answerverified100 fewer ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Technology is an important factor in explaining the high incomes of superstars because

Correct AnswerverifiedShow Answer

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Correct AnswerverifiedShow Answer

In the signaling theory of education,

Correct AnswerverifiedShow Answer

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Job experience,education,lifet...
View Answer

Correct Answer
verified
compensati...
View Answer

Correct Answer
verified

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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100 fewer ...
View Answer

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Correct Answer
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