Question 1

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Accepted Answer

A)   women choose competitive environments more than men.
B)   women and men choose competitive environments equally.
C)   women choose competitive environments less than men.
D)   women are just as likely as men to have high-paying corporate jobs.E) A) and B)
F) B) and C)

Question 2

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

Question 3

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

According to research by Bertrand and Mullainathan, which job applicants, those with "white" names or those with "black" names, received more calls from interested employers? What percent more?

Accepted Answer

The answer of According to research by Bertrand and Mullainathan,...

Question 6

The case study of segregated street cars in southern cities illustrates which of the following?

Accepted Answer

A)   Streetcar owners opposed segregation laws primarily because they were concerned with civil rights.
B)   Segregation laws were supported by both local business owners and patrons.
C)   Firms usually care more about maximizing profits than discriminating against certain customers.
D)   Laws passed by the government cannot reduce discrimination.E) All of the above
F) A) and B)

Question 7

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Accepted Answer

A)   a surplus of labor
B)   unemployment
C)   more unionized jobs
D)   All of the above are consequences of above-equilibrium wages.E) None of the above
F) All of the above

Question 9

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Accepted Answer

A) True 
 B)False

Question 10

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) None of the above
F) C) and D)

Question 11

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 can become sufficiently popular to earn income from advertisements.E) A) and C)
F) A) and B)

Question 12

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) A) and B)
F) B) and D)

Question 13

Which of the following would be considered human capital?

Accepted Answer

A)   the financial capital a person earns over a lifetime of investing
B)   the machinery a worker uses to produce a product
C)   the training a worker receives when starting a new job
D)   the break room in a factory where employees go to have coffeeE) B) and C)
F) A) and C)

Question 14

Which theory states that education makes workers more productive?

Accepted Answer

human-capi...

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 C)
F) A) and B)

Question 16

Economists who study labor markets have discovered that

Accepted Answer

A)   only about 5 percent of wage differences are related to chance.
B)   ability is not difficult to measure but is largely insignificant in explaining wage differences.
C)   work effort is difficult to measure but is not likely to contribute much to an explanation of wage differences.
D)   ability, effort, and chance are likely to be significant contributors to wage differences.E) A) and C)
F) A) and B)

Question 17

Which of the following is an example of a compensating differential?

Accepted Answer

A)   Two workers with different undergraduate majors earn different salaries.
B)   Two workers with different years of experience earn different salaries.
C)   Two workers whose jobs entail different risks earn different salaries.
D)   Two workers with different levels of personal attractiveness earn different salaries.E) A) and B)
F) C) and D)

Question 18

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 B)
F) None of the above

Question 19

It is likely that efficiency wages will decrease employee effort.

Accepted Answer

A) True 
 B)False

Question 20

If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the

Accepted Answer

A)   higher-paying job has a compensating wage differential of $2 per hour.
B)   higher-paying job has a compensating wage differential of $12 per hour.
C)   higher-paying job is intrinsically more attractive than the lower-paying job.
D)   wage in the higher-paying job must eventually fall due to competition.E) B) and C)
F) A) and D)

Exam 19: Earnings and Discrimination

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

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Correct AnswerverifiedShow Answer

Economists who study labor markets have discovered that

Correct AnswerverifiedShow Answer

Which theory states that education makes workers more productive?

Correct Answerverifiedhuman-capi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

It is likely that efficiency wages will decrease employee effort.

Correct AnswerverifiedShow Answer

Which of the following is an example of a compensating differential?

Correct AnswerverifiedShow Answer

If a worker is indifferent between a job with a wage of $10 per hour and a job with a wage of $12 per hour, then the

Correct AnswerverifiedShow Answer

It is illegal in the United States for firms to pay different employees different wages for doing the same job.

Correct AnswerverifiedShow Answer

Which of the following is not a consequence of above-equilibrium wages in a labor market?

Correct AnswerverifiedShow Answer

Streetcar owners in the early 20th century were against segregation for profit maximizing reasons.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Correct AnswerverifiedShow Answer

A study by labor economists Hamermesh and Biddle found that

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Which of the following would be considered human capital?

Correct AnswerverifiedShow Answer

A college degree makes a person more productive according to

Correct AnswerverifiedShow Answer

The case study of segregated street cars in southern cities illustrates which of the following?

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

According to research by Bertrand and Mullainathan, which job applicants, those with "white" names or those with "black" names, received more calls from interested employers? What percent more?

Correct AnswerverifiedShow Answer

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