Question 1

Effective minimum-wage laws will most likely result in (i) 	an increased demand for labor.
(ii) 	a surplus of labor.
(iii) 	higher incomes for all unskilled workers.

Accepted Answer

A)  (i)  only
B)  (ii)  only
C)  (i)  and (iii) 
D)  (ii)  and (iii) E) C) and D)
F) B) and D)

Question 2

Which of the following statements is not correct?

Accepted Answer

A)  If the signaling theory of education is correct, additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education.
B)  The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive.
C)  Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits.
D)  The theory of compensating wage differentials reflects the different skills, abilities, and productivity of workers.E) A) and B)
F) A) and C)

Question 3

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for

Accepted Answer

A)  virtually none of the variation in wages in our economy.
B)  some, but less than 50 percent of the variation in wages in our economy.
C)  about 75 percent of the variation in wages in our economy.
D)  almost all of the variation in wages in our economy.E) All of the above
F) None of the above

Question 4

Figure 19-1
 
-Refer to Figure 19-1.Some policymakers have argued that the government should establish a "living wage." A living wage would provide workers a reasonable standard of living in their city or region.If a living wage of $10 per hour is established in the market pictured here,we would expect

Accepted Answer

A)  employment will increase to 14 million.
B)  employment will decrease to 8 million.
C)  the wage will actually rise to $20 per hour.
D)  there will be a surplus of 14 million workers.E) A) and D)
F) C) and D)

Question 5

Suppose that Philip is the best contractor in town,and he makes $400,000 a year.Suppose that Julia Roberts is the best and highest paid actress in Hollywood,and she makes $13 million per movie.Both are the best in their respective fields of work.One reason for the significant difference in incomes has to do with the nature of the service each offers.Philip's contracting services

Accepted Answer

A)  can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year.
B)  can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
C)  can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
D)  can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.E) All of the above
F) A) and B)

Question 6

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 fo...

Question 7

Which of the following statements represents the idea behind signaling in education?

Accepted Answer

A)  Education can turn an unproductive person into a productive person.
B)  Education increases the marginal productivity of naturally productive workers.
C)  The more naturally productive people are more inclined to educate themselves.
D)  All of the above are correct.E) B) and C)
F) B) and D)

Question 8

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 there will be an excess

Accepted Answer

A)  supply of 3,000 workers.
B)  demand of 7,000 workers.
C)  supply of 4,000 workers.
D)  supply of 7,000 workers.E) A) and C)
F) A) and B)

Question 9

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work on 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) C) and D)
F) None of the above

Question 10

If employers are profit-maximizers,then

Accepted Answer

A)  competition will always eventually eliminate employment discrimination.
B)  employment discrimination may persist if consumers discriminate.
C)  employment discrimination will persist because it is always profitable.
D)  compensating differentials cannot exist.E) A) and B)
F) All of the above

Question 11

Scenario 19-5
Billy works for the local piano moving company part-time after school. Billy has worked for the company for two years but still hasn't received a wage increase, even though newer employees have received raises. Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Billy believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5.Which of the following statements would weaken Billy's case against his employer?

Accepted Answer

A)  Billy only works part-time; as a result, he has fewer hours of experience even though he has been with the company for more years.
B)  Billy complains of lower back problems; as a result, he frequently gets the easy job of holding the doors open while the movers carry the piano into the customer's house.
C)  The other employees have high school diplomas, but Billy did not graduate from high school.
D)  All of the above statements would weaken Billy's case.E) C) and D)
F) B) and D)

Question 12

Which of the following statements is not correct?

Accepted Answer

A)  If a firm discriminates by paying short workers less than tall workers, the firm may be able to compete in the market if the firm's customers also prefer taller workers to shorter workers.
B)  If the government passes regulations that prevent shorter workers from working in higher paying jobs, taller workers may continue to earn higher wages than shorter workers.
C)  Government regulation that prohibits discrimination is economically necessary because market forces support discrimination.
D)  Competitive markets will eliminate discrimination in wages over time unless customer preferences also reflect discrimination and/or government intervention promotes discrimination.E) C) and D)
F) B) and C)

Question 13

Evidence from a 1960s study of the market for baseball players

Accepted Answer

A)  indicated that sports with strong player associations are unlikely to experience wage discrimination.
B)  suggested that government regulation had eliminated most evidence of wage discrimination.
C)  found some evidence of consumer-driven wage discrimination.
D)  found that measurement of marginal productivity was very difficult for baseball players.E) All of the above
F) A) and C)

Question 14

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Accepted Answer

A)  park rangers are required to be college graduates.
B)  park rangers don't need much money to live.
C)  park ranger jobs are perceived to be dangerous.
D)  park ranger jobs are perceived to be "fun."E) B) and C)
F) B) and D)

Question 15

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Accepted Answer

A)  lower due to a higher supply of workers in that group.
B)  lower due to a lower demand for workers in that group.
C)  higher due to a lower supply of workers in that group.
D)  higher due to a higher demand for workers in that group.E) None of the above
F) B) and D)

Question 16

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Accepted Answer

A)  the earnings gap between high-skill jobs and low-skill jobs has increased over the last several years.
B)  developing countries do not pay workers the value of their marginal product.
C)  developed economies export high-skill jobs to developing countries.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 17

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Accepted Answer

A) True 
 B)False

Question 18

Discrimination may persist even in competitive markets when the source of the discrimination is

Accepted Answer

A)  employer prejudice.
B)  customer prejudice.
C)  wage prejudice.
D)  Both a and b are correct.E) A) and B)
F) B) and C)

Question 19

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Accepted Answer

A)  chance.
B)  natural ability.
C)  the fact that the players' union is strong.
D)  a compensating differential.E) A) and C)
F) A) and D)

Question 20

A signaling theory of education suggests that

Accepted Answer

A)  people who attend college are more likely to capture a "beauty premium."
B)  education is a signal of social status.
C)  education does not necessarily increase productivity.
D)  education will sever the link between innate ability and compensation.E) A) and C)
F) B) and C)

Exam 19: Earnings and Discrimination

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 there will be an excess

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 fo...
View Answer

Correct Answer
verified

Discrimination may persist even in competitive markets when the source of the discrimination is

Correct Answer
verified

Which of the following statements represents the idea behind signaling in education?

Correct Answer
verified

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct Answer
verified

Correct Answer
verified

Effective minimum-wage laws will most likely result in (i) an increased demand for labor. (ii) a surplus of labor. (iii) higher incomes for all unskilled workers.

Correct Answer
verified

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Correct Answer
verified

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for

Correct Answer
verified

A signaling theory of education suggests that

Correct Answer
verified

Evidence from a 1960s study of the market for baseball players

Correct Answer
verified

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct Answer
verified

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

Correct Answer
verified

If employers are profit-maximizers,then

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Correct Answer
verified

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct Answer
verified

Exam 19: Earnings and Discrimination

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 there will be an excess

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 fo...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Discrimination may persist even in competitive markets when the source of the discrimination is

Correct AnswerverifiedShow Answer

Which of the following statements represents the idea behind signaling in education?

Correct AnswerverifiedShow Answer

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Effective minimum-wage laws will most likely result in (i) an increased demand for labor. (ii) a surplus of labor. (iii) higher incomes for all unskilled workers.

Correct AnswerverifiedShow Answer

Park rangers at Yellowstone National Park are known to have low wages.This is probably because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Studies of wages by labor economists indicate that measurable variables such as age,job characteristics,years of education,and years of experience account for

Correct AnswerverifiedShow Answer

A signaling theory of education suggests that

Correct AnswerverifiedShow Answer

Evidence from a 1960s study of the market for baseball players

Correct AnswerverifiedShow Answer

The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If employers are profit-maximizers,then

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

If there is systematic discrimination against a group of workers,then the wage paid to those workers likely will be

Correct AnswerverifiedShow Answer

The statement "the rich get richer and the poor get poorer" is evident in the fact that

Correct AnswerverifiedShow Answer

Correct Answer
verified

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

Correct Answer
verified

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