Question 1

Experimental evidence indicates women choose less competitive environments than men.

Accepted Answer

A) True 
 B)False

Question 2

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

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) B) and D)

Question 6

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Accepted Answer

Differences in human...

Question 7

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 D)
F) C) and D)

Question 8

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses. Both hypotheses

Accepted Answer

A)  suggest that, over time, the demand for unskilled labor has risen relative to the demand for skilled labor.
B)  suggest that, over time, the demand for skilled labor has risen relative to the demand for unskilled labor.
C)  emphasize the shrinking importance of international trade in recent years.
D)  emphasize the growing importance of women and teenagers in the workforce in recent years.E) B) and C)
F) A) and B)

Question 9

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Accepted Answer

A)  signaling
B)  human-capital view
C)  superstar phenomenon
D)  benefits of beautyE) A) and B)
F) B) and C)

Question 10

Labor unions will raise the quantity of labor demanded.

Accepted Answer

A) True 
 B)False

Question 11

Minimum wage laws

Accepted Answer

A)  creates a surplus of labor in markets where the equilibrium wage is above the minimum wage.
B)  cannot be valid unless labor unions are sufficiently powerful to force enactment of those laws in the first place.
C)  are likely to have a greater effect on unskilled-labor markets than on skilled-labor markets.
D)  All of the above are correct.E) None of the above
F) A) and D)

Question 12

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

Accepted Answer

A)  human capital and compensating differentials
B)  human capital but not compensating differentials
C)  compensating differentials but not human capital
D)  neither human capital nor compensating differentialsE) None of the above
F) C) and D)

Question 13

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Accepted Answer

A)  differences in chance.
B)  differences in natural ability.
C)  the fact that the players' union is strong.
D)  a compensating differential.E) A) and B)
F) A) and C)

Question 14

A compensating differential refers to differences in pay due to

Accepted Answer

A)  productivity levels of workers.
B)  signaling differences of workers.
C)  nonmonetary characteristics of jobs.
D)  All of the above are correct.E) All of the above
F) None of the above

Question 15

A study by labor economists Hamermesh and Biddle found that

Accepted Answer

A)  shorter-than-average men earn more than shorter-than-average women, all else equal.
B)  above-average looking people earn more than average-looking people, all else equal.
C)  shorter women earn more than taller women, all else equal.
D)  All of the above are correct.E) B) and D)
F) None of the above

Question 16

Education raises wages because the demanders of labor

Accepted Answer

A)  are willing to pay more for highly educated workers who have higher marginal products and the suppliers of labor are willing to pay the cost of becoming educated only if they are rewarded.
B)  are willing to pay the cost of becoming educated only if they are rewarded and the suppliers of labor are willing to pay more for highly educated workers who have higher marginal products.
C)  require fewer workers if they are highly educated.
D)  None of the above is correct.E) All of the above
F) A) and B)

Question 17

Which of the following is not an interpretation of the "beauty premium"?

Accepted Answer

A)  Beautiful workers are not willing to work for lower wages.
B)  Good looks are a type of innate ability causing the worker to be more valuable to the firm.
C)  The beauty premium is a type of discrimination.
D)  Beauty is an indirect measure of other types of ability.E) B) and C)
F) A) and D)

Question 18

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)  what the professor has learned from seminar courses on effective teaching methodsE) None of the above
F) A) and B)

Question 19

On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be 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 20

Tiffany is a black 21-year-old female, and Danielle is a black 41-year-old female. Both Tiffany and Danielle were accounting majors, and they graduated from the same college with the same GPA - Tiffany in 2013 and Danielle in 1992. Tiffany and Danielle are both auditors at the same accounting firm. Tiffany earns $63,000 a year, and Danielle earns $95,000 a year. Select the best explanation for this wage difference.

Accepted Answer

A)  Tiffany has more human capital than Danielle.
B)  Tiffany has less human capital than Danielle.
C)  Tiffany has been discriminated against because she is young.
D)  Danielle has been discriminated against because she is old.E) B) and D)
F) C) and D)

Exam 19: Earnings and Discrimination

Education raises wages because the demanders of labor

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses. Both hypotheses

Correct Answer
verified

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

Correct Answer
verified

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Correct Answer
verified
Differences in human...
View Answer

Which of the following is not an interpretation of the "beauty premium"?

Correct Answer
verified

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

Correct Answer
verified

On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be attributed to

Correct Answer
verified

Human capital is

Correct Answer
verified

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct Answer
verified

Minimum wage laws

Correct Answer
verified

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

Correct Answer
verified

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct Answer
verified

Correct Answer
verified

A study by labor economists Hamermesh and Biddle found that

Correct Answer
verified

Experimental evidence indicates women choose less competitive environments than men.

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

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Correct Answer
verified

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

Correct Answer
verified

Labor unions will raise the quantity of labor demanded.

Correct Answer
verified

A compensating differential refers to differences in pay due to

Correct Answer
verified

Exam 19: Earnings and Discrimination

Education raises wages because the demanders of labor

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses. Both hypotheses

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages.

Correct AnswerverifiedDifferences in human...View AnswerShow Answer

Which of the following is not an interpretation of the "beauty premium"?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be attributed to

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct AnswerverifiedShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A study by labor economists Hamermesh and Biddle found that

Correct AnswerverifiedShow Answer

Experimental evidence indicates women choose less competitive environments than men.

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

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Labor unions will raise the quantity of labor demanded.

Correct AnswerverifiedShow Answer

A compensating differential refers to differences in pay due to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Differences in human...
View Answer

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