Question 1

A worker association that bargains with employers over wages and working conditions is called

Accepted Answer

A)  a strike.
B)  an oligopoly.
C)  a firm.
D)  a union.E) A) and C)
F) B) and D)

Question 2

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Accepted Answer

A)  a surplus of labor.
B)  no unemployment.
C)  an increase in the number of people employed.
D)  an decrease in the quantity of labor supplied.E) B) and D)
F) A) and B)

Question 3

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Accepted Answer

A)  the theory of efficiency wages
B)  the marginal-productivity theory
C)  human-capital theory
D)  signaling theoryE) B) and C)
F) All of the above

Question 4

The fact that doctors are paid more than economics professors is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 5

In general,the higher a person's education level,

Accepted Answer

A)  The higher the person's earnings.
B)  The more physically attractive the person is likely to be.
C)  The more socially outgoing the person is likely to be.
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 6

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Accepted Answer

A)  One hypothesis emphasizes education,and the other emphasizes random influences.
B)  One hypothesis emphasizes education,and the other emphasizes supply and demand.
C)  One hypothesis emphasizes international trade,and the other emphasizes technology.
D)  One hypothesis emphasizes signaling,and the other emphasizes education.E) A) and B)
F) None of the above

Question 7

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions?
 If so,describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience,education,lifet...

Question 8

In determining wages,ability,effort,and chance

Accepted Answer

A)  probably play no role whatsoever.
B)  play a role,but their importance is hard to gauge since ability,effort,and chance are hard to measure.
C)  play a role,and that role is fully captured in easy-to-measure factors such as human capital and age.
D)  play a role,and it is fully explained within the context of compensating differentials.E) B) and C)
F) All of the above

Question 9

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Accepted Answer

A)  unrestricted entry and exit in markets.
B)  lower costs of hiring.
C)  a perfectly elastic market demand.
D)  customer preferences.E) None of the above
F) C) and D)

Question 10

An effective minimum wage law will increase the quantity of labor demanded.

Accepted Answer

A) True 
 B)False

Question 11

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift.The difference in pay is 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 12

Human capital is

Accepted Answer

A)  a stock of equipment and structures.
B)  the result of investments workers make in themselves such as on-the-job training.
C)  a difference in wages that arises to offset the nonmonetary characteristics of different jobs.
D)  inversely related to the supply of workers.E) A) and D)
F) C) and D)

Question 13

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

Accepted Answer

Consumers are able to exercise their bia...

Question 14

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Accepted Answer

A)  will increase only if the company can increase the price of its product.
B)  is likely to increase.
C)  is likely to decrease.
D)  will not change.E) A) and D)
F) A) and C)

Question 15

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Accepted Answer

A) True 
 B)False

Question 16

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Suppose that a company hires recent college graduates for two types of jobs,sales people and credit analysts.The hours worked and skill levels are the same for both positions.The sales people must "cold call," which many people find to be unpleasant.When comparing the salaries of the two positions,it is likely that the company pays the

Accepted Answer

A)  credit analysts more as a compensating differential.
B)  sales people more as a compensating differential.
C)  same salary for both positions because they require the same skill level.
D)  same salary for both positions because it would be illegal to do otherwise.E) B) and D)
F) None of the above

Question 19

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Accepted Answer

A)  a compensating differential.
B)  an inefficiency wage.
C)  the equilibrium difference.
D)  a union wage.E) A) and B)
F) A) and C)

Question 20

For a "superstar" to emerge,it must be the case that

Accepted Answer

A)  it is possible to supply the good or service that the superstar produces at low cost to every customer.
B)  some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar.
C)  the superstar has a natural monopoly on his or her good or service.
D)  the superstar is willing to settle for a level of pay that is less than the value of his marginal product.E) A) and B)
F) C) and D)

Exam 19: Earnings and Discrimination

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct Answer
verified

In general,the higher a person's education level,

Correct Answer
verified

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct Answer
verified

For a "superstar" to emerge,it must be the case that

Correct Answer
verified

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct Answer
verified

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift.The difference in pay is attributed to

Correct Answer
verified

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Correct Answer
verified

Human capital is

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

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct Answer
verified

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct Answer
verified

Correct Answer
verified

The fact that doctors are paid more than economics professors is an example of a compensating differential.

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

An effective minimum wage law will increase the quantity of labor demanded.

Correct Answer
verified

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct Answer
verified
Job experience,education,lifet...
View Answer

A worker association that bargains with employers over wages and working conditions is called

Correct Answer
verified

In determining wages,ability,effort,and chance

Correct Answer
verified

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Correct Answer
verified

Exam 19: Earnings and Discrimination

Differences in human capital among groups of workers is possibly a reflection of past discrimination.

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct AnswerverifiedShow Answer

In general,the higher a person's education level,

Correct AnswerverifiedShow Answer

A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.

Correct AnswerverifiedShow Answer

For a "superstar" to emerge,it must be the case that

Correct AnswerverifiedShow Answer

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct AnswerverifiedShow Answer

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift.The difference in pay is attributed to

Correct AnswerverifiedShow Answer

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Correct AnswerverifiedShow Answer

Human capital is

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

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct AnswerverifiedShow Answer

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The fact that doctors are paid more than economics professors is an example of a compensating differential.

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

An effective minimum wage law will increase the quantity of labor demanded.

Correct AnswerverifiedShow Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations.Do any of these factors arise as a result of cultural or social traditions? If so,describe how changes in social relationships will affect the pay gap over time.

Correct AnswerverifiedJob experience,education,lifet...View AnswerShow Answer

A worker association that bargains with employers over wages and working conditions is called

Correct AnswerverifiedShow Answer

In determining wages,ability,effort,and chance

Correct AnswerverifiedShow Answer

When employers pay an efficiency wage above the market equilibrium wage,this will likely result in

Correct AnswerverifiedShow Answer

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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Job experience,education,lifet...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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