Question 1

Over the past several years,the earnings gap between high-skilled and low-skilled workers has

Accepted Answer

A)   increased.
B)   decreased.
C)   remained constant.
D)   first increased by a small percent,then decreased by a large percent.E) All of the above
F) B) and C)

Question 2

One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence.

Accepted Answer

A) True 
 B)False

Question 3

Why can superstar athletes and moviestars earn mulitmillion dollar salaries but superstar electricians and professors cannot?

Accepted Answer

A)   Every customer in the market wants to enjoy the good supplied by the best producer.
B)   Technology makes it possible for the best producer to supply every customer at low cost.
C)   Customers are willing to pay more for entertainment than other services.
D)   Both a and b are correct.E) B) and C)
F) All of the above

Question 4

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Accepted Answer

A)   non-pecuniary differentials
B)   compensating differentials
C)   fundamental differences
D)   idiosyncratic differencesE) A) and B)
F) A) and C)

Question 5

Explain the role of job experience in explaining the differences between the average wages of men and women.

Accepted Answer

Women,who have primary responsibility fo...

Question 6

Efficiency wages will raise the quantity of labor supplied to the market.

Accepted Answer

A) True 
 B)False

Question 7

Figure 19-1 
-Studies show that white women earn approximately 24% less than white men.From this data alone,one should not conclude that white women are victims of discrimination.Name two other factors could explain the difference in wages.

Accepted Answer

Differences in human...

Question 8

George and Brad are waiters at a local restaurant.The female customers think that George is better looking than Brad.If George earns more than Brad,this could be an example of each of the following except

Accepted Answer

A)   customer preferences.
B)   discrimination.
C)   a beauty premium.
D)   a compensating differential.E) None of the above
F) All of the above

Question 9

Dr.Benson is regarded as,by far,the best dentist in his part of the country,yet his income is not significantly higher than the average income for a dentist in his area.In contrast,Bo Johnson,the best baseball player in that region,earns five times the average salary of all baseball players.The most likely explanation is that

Accepted Answer

A)   the widespread perception that Dr.Benson is a great dentist is,in fact,incorrect.
B)   the baseball players' union is more powerful than the professional association of dentists.
C)   Bo Johnson,unlike Dr.Benson,can provide his services to millions of people simultaneously.
D)   chance plays a role in determining people's incomes,resulting in earnings discrepancies that are hard to explain or justify.E) C) and D)
F) B) and C)

Question 10

Why is a plumber never likely to be as rich as a movie star?

Accepted Answer

A)   Compensating differentials create a higher wage in the movie business.
B)   There haven't been any significant technological advances in the plumbing industry.
C)   Productivity levels are low in the plumbing industry due to low worker morale.
D)   A plumber can provide his services to only a limited number of customers.E) C) and D)
F) B) and D)

Question 11

Figure 19-1 
-Refer to Figure 19-1.If a union is successful in reducing supply from S1 to S2,the wage will

Accepted Answer

A)   rise from $15 per hour to $18 per hour and 100 fewer people will be employed.
B)   rise from $15 per hour to $18 per hour and 200 more people will be employed.
C)   fall from $15 per hour to $12 per hour and 100 more people will be employed.
D)   fall from $18 per hour to $15 per hour and 200 fewer people will be employed.E) A) and D)
F) None of the above

Question 12

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

Question 13

Discrimination is a reflection of some people's prejudice against certain groups in society.

Accepted Answer

A) True 
 B)False

Question 14

Sometimes workers earn higher wages through chance.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is correct?

Accepted Answer

A)   The human-capital theory of education could be called a productivity-enhancing theory.
B)   The human-capital theory of education could be called a productivity-revealing theory.
C)   The signaling theory of education could be called a productivity-enhancing theory.
D)   The signaling theory of education has been disproven by a number of prominent economists.E) All of the above
F) A) and C)

Question 16

Why do college graduates earn more in wages than workers with only a high school diploma?

Accepted Answer

They have ...

Question 17

Which of the following is an example of customer discrimination?

Accepted Answer

A)   European soccer players earn more than U.S.soccer players since soccer is more popular in Europe.
B)   Male basketball players in the NBA earn higher salaries than female basketball players in the WNBA since viewers prefer watching NBA games.
C)   Golfers on the men's PGA tour earn more than golfers on the women's LPGA tour since people prefer watching the men play golf.
D)   All of the above are examples of customer discrimination.E) None of the above
F) All of the above

Question 18

Which of the following is not a conclusion reached by Benmelech and Berrebi in their study of Palestinian suicide bombers?

Accepted Answer

A)   Suicide bombers who are younger and less educated are more likely to be caught on their missions.
B)   Suicide bombers who are older and more educated are more likely to kill large numbers of people.
C)   60% of the most successful bombers were college educated.
D)   40% of college-educated bombers decided not to proceed with their bombing plot because they reassessed the value of their lives.E) B) and C)
F) C) and D)

Question 19

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Accepted Answer

A)   the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years.
B)   developing countries do not pay workers the value of their marginal product.
C)   developed economies export high-skill jobs to developing countries.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 20

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Explain the role of job experience in explaining the differences between the average wages of men and women.

Correct Answer
verified
Women,who have primary responsibility fo...
View Answer

Why is a plumber never likely to be as rich as a movie star?

Correct Answer
verified

Discrimination is a reflection of some people's prejudice against certain groups in society.

Correct Answer
verified

Sometimes workers earn higher wages through chance.

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct Answer
verified

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct Answer
verified

Which of the following is an example of customer discrimination?

Correct Answer
verified

Which of the following is not a conclusion reached by Benmelech and Berrebi in their study of Palestinian suicide bombers?

Correct Answer
verified

Figure 19-1 -Refer to Figure 19-1.If a union is successful in reducing supply from S1 to S2,the wage will

Correct Answer
verified

Over the past several years,the earnings gap between high-skilled and low-skilled workers has

Correct Answer
verified

Why can superstar athletes and moviestars earn mulitmillion dollar salaries but superstar electricians and professors cannot?

Correct Answer
verified

One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence.

Correct Answer
verified

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

Correct Answer
verified

George and Brad are waiters at a local restaurant.The female customers think that George is better looking than Brad.If George earns more than Brad,this could be an example of each of the following except

Correct Answer
verified

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct Answer
verified

Figure 19-1 -Studies show that white women earn approximately 24% less than white men.From this data alone,one should not conclude that white women are victims of discrimination.Name two other factors could explain the difference in wages.

Correct Answer
verified
Differences in human...
View Answer

Why do college graduates earn more in wages than workers with only a high school diploma?

Correct Answer
verified
They have ...
View Answer

Efficiency wages will raise the quantity of labor supplied to the market.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Explain the role of job experience in explaining the differences between the average wages of men and women.

Correct AnswerverifiedWomen,who have primary responsibility fo...View AnswerShow Answer

Why is a plumber never likely to be as rich as a movie star?

Correct AnswerverifiedShow Answer

Discrimination is a reflection of some people's prejudice against certain groups in society.

Correct AnswerverifiedShow Answer

Sometimes workers earn higher wages through chance.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

Correct AnswerverifiedShow Answer

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct AnswerverifiedShow Answer

Which of the following is an example of customer discrimination?

Correct AnswerverifiedShow Answer

Which of the following is not a conclusion reached by Benmelech and Berrebi in their study of Palestinian suicide bombers?

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1.If a union is successful in reducing supply from S1 to S2,the wage will

Correct AnswerverifiedShow Answer

Over the past several years,the earnings gap between high-skilled and low-skilled workers has

Correct AnswerverifiedShow Answer

Why can superstar athletes and moviestars earn mulitmillion dollar salaries but superstar electricians and professors cannot?

Correct AnswerverifiedShow Answer

One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence.

Correct AnswerverifiedShow 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

Correct AnswerverifiedShow Answer

George and Brad are waiters at a local restaurant.The female customers think that George is better looking than Brad.If George earns more than Brad,this could be an example of each of the following except

Correct AnswerverifiedShow Answer

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct AnswerverifiedShow Answer

Figure 19-1 -Studies show that white women earn approximately 24% less than white men.From this data alone,one should not conclude that white women are victims of discrimination.Name two other factors could explain the difference in wages.

Correct AnswerverifiedDifferences in human...View AnswerShow Answer

Why do college graduates earn more in wages than workers with only a high school diploma?

Correct AnswerverifiedThey have ...View AnswerShow Answer

Efficiency wages will raise the quantity of labor supplied to the market.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Women,who have primary responsibility fo...
View Answer

Correct Answer
verified

Correct Answer
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Differences in human...
View Answer

Correct Answer
verified
They have ...
View Answer

Correct Answer
verified