Question 1

In the early 20th century, streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back. The firms that ran the streetcars were

Accepted Answer

A)  in favor of the segregation laws because they lowered costs and increased profits.
B)  against the segregation laws because they increased costs and lowered profits.
C)  lobbied local governments to enact such laws because their customers were willing to pay more for service in order to maintain the segregation.
D)  concerned about the effects of smoking. Since blacks smoked more than whites, they were supportive of the segregation laws.E) A) and B)
F) None of the above

Question 2

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Accepted Answer

A)  Dave's job is less dangerous.
B)  of efficiency wages.
C)  of education as a signal.
D)  Dave has more human capital.E) C) and D)
F) A) and B)

Question 3

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. Economists, however, argue against this approach because

Accepted Answer

A)  they don't believe the wage differential really exists.
B)  they can't agree on a definition of the term "discrimination."
C)  they believe compensating differentials account for all wage differences.
D)  different people may have different wages for reasons unrelated to discrimination.E) B) and C)
F) A) and D)

Question 4

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 difficult jobs exceeds that for easy jobs.
B)  The quantity of labor supplied for fun jobs exceeds that for dull jobs.
C)  The quantity of labor supplied for dangerous jobs exceeds that for safe jobs.
D)  All of the above are correct.E) None of the above
F) B) and D)

Question 5

Name two occupations that have the two characteristics required for the superstar phenomenon.

Accepted Answer

The answer of Name two occupations that have the two...

Question 6

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Accepted Answer

A) True 
 B)False

Question 7

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) C) and D)
F) B) and D)

Question 8

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Accepted Answer

A)  physical-capital theory
B)  human-capital theory
C)  signaling theory
D)  neoclassical theoryE) C) and D)
F) None of the above

Question 9

If the signaling theory of education is correct,

Accepted Answer

A)  workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
B)  additional years of formal schooling do not increase a worker's productivity.
C)  workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.
D)  men are more likely to earn more than women because men are more likely to have graduated from college.E) None of the above
F) B) and C)

Question 10

A college degree makes a person more productive according to

Accepted Answer

A)  both the human-capital and the signaling theories of education.
B)  the human-capital but not the signaling theory of education.
C)  the signaling but not the human-capital theory of education.
D)  neither the human-capital nor the signaling theory of education.E) None of the above
F) A) and B)

Question 11

Sometimes wages are set above the equilibrium level when firms pay

Accepted Answer

A)  workers with more seniority higher wages than newly-hired workers.
B)  efficiency wages to reduce turnover.
C)  compensating differentials to workers who work the night shift.
D)  more attractive salespeople higher wages than less attractive salespeople.E) All of the above
F) B) and C)

Question 12

Which of the following would be considered an investment in human capital?

Accepted Answer

A)  education
B)  a teacher's blackboard
C)  the purchase of a new computer to enhance labor productivity
D)  All of the above are correct.E) C) and D)
F) All of the above

Question 13

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Accepted Answer

The answer of Among male workers over age 25, about...

Question 14

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Accepted Answer

A)  the human-capital view of education.
B)  the signaling view of education.
C)  both the human-capital and the signaling view of education.
D)  neither the human-capital nor the signaling view of education.E) A) and B)
F) None of the above

Question 15

Which of the following factors does not affect the value of a worker's marginal product?

Accepted Answer

A)  discrimination against a particular group of workers by a firm's customers
B)  a worker's level of disposable income
C)  a worker's level of human capital
D)  compensating wage differentialsE) None of the above
F) All of the above

Question 16

When discrimination occurs as a result of employer prejudice, discriminating firms do not maximize profits.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is the most likely outcome of raising the minimum wage?

Accepted Answer

A)  an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
B)  an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms
C)  a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms
D)  a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firmsE) None of the above
F) A) and D)

Question 18

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 19

Figure 19-1 
-Refer to Figure 19-1. If the minimum wage in this market is $8, then

Accepted Answer

A)  employment is 10 million
B)  employment is 12 million
C)  there is a surplus of 1 million workers
D)  there is a surplus of 3 million workersE) A) and C)
F) A) and D)

Question 20

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the amount of human capital they have and the kinds of work they are willing and able to do.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the amount of human capital they have and the kinds of work they are willing and able to do.

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1. If the minimum wage in this market is $8, then

Correct AnswerverifiedShow Answer

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

Correct AnswerverifiedShow Answer

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women. Economists, however, argue against this approach because

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 the early 20th century, streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back. The firms that ran the streetcars were

Correct AnswerverifiedShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when firms pay

Correct AnswerverifiedShow Answer

Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

Correct AnswerverifiedShow Answer

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

Correct AnswerverifiedShow Answer

When discrimination occurs as a result of employer prejudice, discriminating firms do not maximize profits.

Correct AnswerverifiedShow Answer

If the signaling theory of education is correct,

Correct AnswerverifiedShow Answer

Name two occupations that have the two characteristics required for the superstar phenomenon.

Correct AnswerverifiedShow Answer

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Correct AnswerverifiedShow Answer

A college degree makes a person more productive according to

Correct AnswerverifiedShow Answer

Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?

Correct AnswerverifiedShow Answer

Which of the following is the most likely outcome of raising the minimum wage?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following factors does not affect the value of a worker's marginal product?

Correct AnswerverifiedShow Answer

Which of the following would be considered an investment in human capital?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
attitudes ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified