Question 1

Which of the following factors affects the marginal productivity of a worker?

Accepted Answer

A)   human capital
B)   the worker's disposable income
C)   compensating wage differentials
D)   discrimination based on age, race, or genderE) B) and D)
F) None of the above

Question 2

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

Question 3

Customer discrimination is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Discrimination is an emotionally charged issue that is impossible to study objectively.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Table 19-1  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Accepted Answer

A)   increased by 35% while the salary gap among men increased by 42%.
B)   more than doubled while the salary gap among men rose significantly but less than doubled.
C)   increased, but the salary gap among men decreased.
D)   decreased, but the salary gap among men increased.E) B) and D)
F) All of the above

Question 9

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

Question 10

Which of the following explains the "beauty premium" differences in wages?

Accepted Answer

A)   People who spend time on their personal appearance may send a signal that they are more productive workers.
B)   Personal appearance and intelligence are inversely related.
C)   The "superstar phenomenon" explains the "beauty premium."
D)   Better-looking people are more efficient; thus, they are paid an efficiency wage.E) A) and B)
F) A) and C)

Question 11

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

Question 12

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Accepted Answer

A) True 
 B)False

Question 13

The wage difference between jobs that require education and those that don't

Accepted Answer

A)   is not likely to be related to productivity differences.
B)   is a barrier to obtaining an education.
C)   does not affect the supply of workers in the different labor markets.
D)   encourages workers to bear the cost of acquiring education.E) C) and D)
F) None of the above

Question 14

Evidence from a 1988 study of the market for professional basketball players

Accepted Answer

A)   found no evidence of consumer-driven wage discrimination.
B)   found some evidence of consumer-driven wage discrimination.
C)   found that measurement of marginal productivity was very difficult for basketball players.
D)   indicated that sports with strong player associations are unlikely to experience wage discrimination.E) B) and D)
F) A) and D)

Question 15

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 get to travel to several desirable locations, whereas the credit analysts do not leave the home office. When comparing the salaries of the two positions, it is likely that the company pays the

Accepted Answer

A)   sales people less as a compensating differential.
B)   credit analysts less 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) All of the above
F) B) and C)

Question 16

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

Question 17

Which of these instances would constitute labor-market discrimination? Henry receives a higher wage than Ryan. Henry and Ryan are identical in all of their labor-market characteristics except that

Accepted Answer

A)   Henry is a college graduate, and Ryan has only a high school diploma.
B)   Henry has 10 years of experience at his job, whereas Ryan has only five years of experience.
C)   Henry is white and Ryan is Black.
D)   by objective measures Henry consistently outperforms Ryan.E) A) and D)
F) A) and B)

Question 18

Explain the role of job experience in explaining the differences between the average wages of men and women.

Accepted Answer

Women, who have primary responsibility f...

Question 19

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

Question 20

Efficiency wages may decrease employee turnover.

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 Answer
verified

Customer discrimination is illegal in the United States.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Correct Answer
verified

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

Correct Answer
verified

Which of the following explains the "beauty premium" differences in wages?

Correct Answer
verified

Which of the following factors affects the marginal productivity of a worker?

Correct Answer
verified

Efficiency wages may decrease employee turnover.

Correct Answer
verified

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Correct Answer
verified

Evidence from a 1988 study of the market for professional basketball players

Correct Answer
verified

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

Correct Answer
verified

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 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

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Correct Answer
verified

The wage difference between jobs that require education and those that don't

Correct Answer
verified

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct Answer
verified

Explain the role of job experience in explaining the differences between the average wages of men and women.

Correct Answer
verified
Women, who have primary responsibility f...
View 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 Answer
verified

Which of these instances would constitute labor-market discrimination? Henry receives a higher wage than Ryan. Henry and Ryan are identical in all of their labor-market characteristics except that

Correct Answer
verified

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

Customer discrimination is illegal in the United States.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following explains the "beauty premium" differences in wages?

Correct AnswerverifiedShow Answer

Which of the following factors affects the marginal productivity of a worker?

Correct AnswerverifiedShow Answer

Efficiency wages may decrease employee turnover.

Correct AnswerverifiedShow Answer

The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential employers.

Correct AnswerverifiedShow Answer

Evidence from a 1988 study of the market for professional basketball players

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.

Correct AnswerverifiedShow Answer

The wage difference between jobs that require education and those that don't

Correct AnswerverifiedShow Answer

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct AnswerverifiedShow Answer

Explain the role of job experience in explaining the differences between the average wages of men and women.

Correct AnswerverifiedWomen, who have primary responsibility f...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

Which of these instances would constitute labor-market discrimination? Henry receives a higher wage than Ryan. Henry and Ryan are identical in all of their labor-market characteristics except that

Correct AnswerverifiedShow Answer

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Women, who have primary responsibility f...
View Answer

Correct Answer
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Correct Answer
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