Question 1

Explain the role that consumers play in perpetuating discrimination in labor markets.

Accepted Answer

Consumers are able to exercise their bia...

Question 2

According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Accepted Answer

A)   an electrician
B)   a hair stylist
C)   a journalist
D)   a rooferE) A) and D)
F) None of the above

Question 3

A union's major source of power is its

Accepted Answer

A)   high-profile leadership.
B)   ability to increase productivity.
C)   ability to threaten a strike.
D)   ability to deny employers the opportunity to bargain over wages.E) All of the above
F) A) and B)

Question 4

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Accepted Answer

A)   Plumbers who work on new residential housing require more training than plumbers working on sewer lines.
B)   Plumbing jobs that involve sewer lines are likely to have a high element of personal satisfaction.
C)   Plumbers who work with sewer lines are more likely to work the day shift.
D)   plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.E) C) and D)
F) A) and B)

Question 5

Bill and Phil are identical twins who attended grammar school through college together.Bill took a job as an engineer who does not have to travel out of the state.Phil took a job as an engineer who must travel out of state once a week.Bill earns $105,000 a year,and Phil earns $185,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)   Phil has more human capital relative to Bill.
B)   Phil has less human capital relative to Bill.
C)   Phil receives a higher wage to compensate for the disagreeable nature of business travel.
D)   Bill's lower salary supports the signaling theory of education.E) C) and D)
F) A) and B)

Question 6

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years.As a result of this investment,economists who adhere to the human capital view of education would predict

Accepted Answer

A)   rising wages as labor productivity is enhanced.
B)   falling wages as the labor market is saturated with too many educated workers.
C)   the marginal productivity of capital would not be affected.
D)   the marginal productivity of labor would not be affected.E) A) and B)
F) A) and C)

Question 7

It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices.Which of the following is widely recognized as a potential limit to the potency of that natural remedy?

Accepted Answer

A)   Governments sometimes mandate discriminatory practices.
B)   Some employees have a lot of job experience;others have little job experience.
C)   In a discriminatory environment,a competitive firm that takes prices and wages as given has nothing to gain from any particular choice it makes regarding who to hire or which customers to serve.
D)   Not all firms exhibit social responsibility in sufficient measure to counter discriminatory wage practices.E) A) and C)
F) A) and D)

Question 8

White women earn an average of 24% 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 D)
F) B) and C)

Question 9

Figure 19-1 
-Refer to Figure 19-1.The figure shows labor demand and labor supply in a non-unionized labor market.Suppose the current labor demand is D1 and the current labor supply is S1.If a firm in this market decided to pay its workers $18 per hour to increase the productivity of its workers,this firm would be paying a(n)

Accepted Answer

The answer of Figure 19-1 
-Refer to Figure 19-1.The figure...

Question 10

In empirical analyses of factors that help explain wages,

Accepted Answer

A)   effort and ability are not likely to contribute to large differences in wages in the U.S.economy.
B)   economists typically find that measurable factors explain less than half of the variation in wages.
C)   economists typically find few factors that are not explicitly measurable.
D)   unmeasurable influences on wage differences are found to be quite small.E) C) and D)
F) B) and C)

Question 11

Which of the following variables related to a worker's wage are the most difficult to measure?

Accepted Answer

A)   ability,effort,and chance
B)   job characteristics,gender,and race
C)   gender,race,and geographic location
D)   years of schooling,age,and years of experienceE) A) and B)
F) A) and C)

Question 12

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Accepted Answer

A) True 
 B)False

Question 13

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Accepted Answer

A)   The quantity of labor supplied for easy jobs exceeds that for difficult jobs.
B)   The quantity of labor supplied for fun jobs exceeds that for dull jobs.
C)   The quantity of labor supplied for safe jobs exceeds that for dangerous jobs.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 14

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 B)
F) None of the above

Question 15

Table 19-1
  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1.In 2008,how much more income would a man with a college degree earn than a man with a high school degree?

Accepted Answer

The answer of Table 19-1
  Source: US Census Bureau...

Question 16

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Accepted Answer

A)   discriminatory rules established by the government
B)   compensating wage differentials for living in Europe
C)   discriminatory preferences on the part of US sports fans for other sports
D)   efficiency wages paid to European players to enhance on-field performanceE) A) and B)
F) B) and C)

Question 17

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

Question 18

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 19

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling,years of experience,age and job characteristics only explained about one-half of the difference in wages.Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may include job ...

Question 20

Which of the following statements is not correct?

Accepted Answer

A)   Competitive markets tend to limit the impact of discrimination on wages.
B)   Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination.
C)   Some differences in earnings are attributable to discrimination based on race,sex,or other factors.
D)   Profit-maximizing behavior can reduce discriminatory wage differentials.E) A) and D)
F) None of the above

Exam 19: Earnings and Discrimination

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

Correct Answer
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Correct Answer
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In empirical analyses of factors that help explain wages,

Correct Answer
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Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1.In 2008,how much more income would a man with a college degree earn than a man with a high school degree?

Correct Answer
verified

Explain the role that consumers play in perpetuating discrimination in labor markets.

Correct Answer
verified
Consumers are able to exercise their bia...
View Answer

Correct Answer
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The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years.As a result of this investment,economists who adhere to the human capital view of education would predict

Correct Answer
verified

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Correct Answer
verified

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Correct Answer
verified

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct Answer
verified

It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices.Which of the following is widely recognized as a potential limit to the potency of that natural remedy?

Correct Answer
verified

A union's major source of power is its

Correct Answer
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According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Correct Answer
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Correct Answer
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Which of the following statements is not correct?

Correct Answer
verified

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct Answer
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Correct Answer
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Other factors may include job ...
View Answer

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

Correct Answer
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Human capital is

Correct Answer
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Which of the following variables related to a worker's wage are the most difficult to measure?

Correct Answer
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Exam 19: Earnings and Discrimination

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In empirical analyses of factors that help explain wages,

Correct AnswerverifiedShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1.In 2008,how much more income would a man with a college degree earn than a man with a high school degree?

Correct AnswerverifiedShow Answer

Explain the role that consumers play in perpetuating discrimination in labor markets.

Correct AnswerverifiedConsumers are able to exercise their bia...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years.As a result of this investment,economists who adhere to the human capital view of education would predict

Correct AnswerverifiedShow Answer

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Correct AnswerverifiedShow Answer

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Correct AnswerverifiedShow Answer

When comparing average wages for male and female workers in the United States,wages paid to females have been about 40 percent less than those paid to male workers.

Correct AnswerverifiedShow Answer

It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices.Which of the following is widely recognized as a potential limit to the potency of that natural remedy?

Correct AnswerverifiedShow Answer

A union's major source of power is its

Correct AnswerverifiedShow Answer

According to the superstar phenomenon,the most talented person in which of the following occupations is most likely to earn extremely high wages?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOther factors may include job ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Which of the following variables related to a worker's wage are the most difficult to measure?

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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Consumers are able to exercise their bia...
View 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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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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Correct Answer
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Other factors may include job ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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