Question 1

Which of the following would not be considered human capital?

Accepted Answer

A)   the training a chef receives in cooking school
B)   the time a chef spends preparing meals in a restaurant practicing his trade
C)   the financial capital a chef uses to start his own restaurant
D)   the skills a chef learns when attending a class about cake decoratingE) B) and C)
F) None of the above

Question 2

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Accepted Answer

A) True 
 B)False

Question 3

Economists are skeptical that discrimination is employer driven because

Accepted Answer

A)   discrimination cannot exist in markets.
B)   employers are not really interested in maximizing profit.
C)   employers typically base wages paid on the prevailing market wage.
D)   holding productivity constant, a profit-maximizing employer will hire the cheapest labor available.E) A) and D)
F) C) and D)

Question 4

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Accepted Answer

A) True 
 B)False

Question 5

When comparing the salaries of a superstar CPA and a superstar golfer,

Accepted Answer

A)   both can earn tremendously high salaries because both can meet with millions of clients.
B)   the superstar CPA will not earn as much as the superstar golfer because superstar accountants do not have access to the same sophisticated technologies that superstar golfers do.
C)   the superstar CPA will not earn as much as the superstar golfer because a superstar accountant can only work with a limited number of clients per day, whereas millions of fans can enjoy the services provided by a superstar golfer on a given day by watching a televised tournament.
D)   the superstar CPA will not earn as much as the superstar golfer because customers are unable to distinguish superstar accountant from a mediocre accountant.E) B) and C)
F) C) and D)

Question 6

According to the human-capital view,education

Accepted Answer

A)   has no effect on lifetime earnings.
B)   alters work ethic.
C)   enhances productivity.
D)   is an indicator of natural ability.E) A) and B)
F) A) and C)

Question 7

Figure 19-1
 
-Refer to Figure 19-1.What is the loss associated with wages moving from $8 to $10?

Accepted Answer

A)   2 million jobs.
B)   6 million jobs.
C)   8 million jobs.
D)   14 million jobs.E) None of the above
F) A) and B)

Question 8

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A)   is unlikely to find evidence of wage differentials.
B)   can provide strong evidence of labor market discrimination.
C)   is likely to misinterpret apparent evidence of labor market discrimination.
D)   is accepted as superior to empirical work that does correct for differences in productivity of workers.E) C) and D)
F) B) and C)

Question 9

Effective minimum-wage laws will most likely

Accepted Answer

A)   increase demand for labor.
B)   create a surplus of labor.
C)   increase incomes for all unskilled workers.
D)   decrease incomes for all unskilled workers.E) A) and B)
F) All of the above

Question 10

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

Question 11

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Accepted Answer

A)   Public school teacher jobs are difficult.
B)   Public school teachers are required to be college graduates.
C)   Public school teachers belong to a union.
D)   Teaching in a public school has a high element of personal satisfaction.E) A) and B)
F) A) and C)

Question 12

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Accepted Answer

A) True 
 B)False

Question 13

When an employer pays the cost of educating a worker,it is likely that the employer

Accepted Answer

A)   is demonstrating altruistic motives.
B)   is pursuing some objective other than profit-maximization.
C)   hopes to recapture his investment in the form of increased labor productivity.
D)   receives reimbursement from the government for the cost of the education.E) All of the above
F) B) and D)

Question 14

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

Accepted Answer

A)   Some workers are members in unions.
B)   Some firms pay efficiency wages; others do not.
C)   Some customers are discriminatory in their buying habits.
D)   Some employees have accumulated more human capital than other employees.E) A) and D)
F) A) and B)

Question 15

Figure 19-1
 
-Which of the following is true of minimum-wage laws?

Accepted Answer

A)   They affect skilled workers' wages.
B)   They create above-equilibrium wages for some unskilled workers.
C)   They create a shortage of unskilled labor.
D)   They negatively affect the employment of skilled workers.E) A) and D)
F) A) and B)

Question 16

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) A) and D)

Question 17

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 the employment level

Accepted Answer

A)   increases from 6,000 to 10,000.
B)   increases from 3,000 to 10,000.
C)   decreases from 10,000 to 3,000.
D)   decreases from 6,000 to 3,000.E) B) and C)
F) B) and D)

Question 18

According to proponents of the signaling theory of education,

Accepted Answer

A)   schooling has no real productivity benefit.
B)   no one person finds it easier to earn a college degree than does any other person.
C)   the human-capital view of education is entirely correct.
D)   employers send signals to young people to persuade them to expend whatever effort is necessary to earn college degrees.E) C) and D)
F) None of the above

Exam 19: Earnings and Discrimination.

According to proponents of the signaling theory of education,

Correct Answer
verified

When an employer pays the cost of educating a worker,it is likely that the employer

Correct Answer
verified

Empirical work that does not account for differences in the productivity of workers

Correct Answer
verified

Figure 19-1 -Refer to Figure 19-1.What is the loss associated with wages moving from $8 to $10?

Correct Answer
verified

Correct Answer
verified

Figure 19-1 -Which of the following is true of minimum-wage laws?

Correct Answer
verified

Which of the following would not be considered human capital?

Correct Answer
verified

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct Answer
verified

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Correct Answer
verified

Economists are skeptical that discrimination is employer driven because

Correct Answer
verified

According to the human-capital view,education

Correct Answer
verified

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Correct Answer
verified

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Correct Answer
verified

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

Correct Answer
verified

When comparing the salaries of a superstar CPA and a superstar golfer,

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

Effective minimum-wage laws will most likely

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 the employment level

Correct Answer
verified

Exam 19: Earnings and Discrimination.

According to proponents of the signaling theory of education,

Correct AnswerverifiedShow Answer

When an employer pays the cost of educating a worker,it is likely that the employer

Correct AnswerverifiedShow Answer

Empirical work that does not account for differences in the productivity of workers

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1.What is the loss associated with wages moving from $8 to $10?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 19-1 -Which of the following is true of minimum-wage laws?

Correct AnswerverifiedShow Answer

Which of the following would not be considered human capital?

Correct AnswerverifiedShow Answer

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct AnswerverifiedShow Answer

In a labor market free from discrimination,wages for workers that are employed by the same company will still differ.

Correct AnswerverifiedShow Answer

Economists are skeptical that discrimination is employer driven because

Correct AnswerverifiedShow Answer

According to the human-capital view,education

Correct AnswerverifiedShow Answer

Public school teachers are known to have low wages.Which of the following would push the teachers' wages lower?

Correct AnswerverifiedShow Answer

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When comparing the salaries of a superstar CPA and a superstar golfer,

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

Effective minimum-wage laws will most likely

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 the employment level

Correct AnswerverifiedShow 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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified