Question 1

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Accepted Answer

A)   they don't believe the wage differential really exists.
B)   they can't agree on a definition of the term "discrimination."
C)   they believe compensating differentials account for all wage differences.
D)   different people may have different wages for reasons unrelated to discrimination.

Question 2

Economists who study labor markets have documented

Accepted Answer

A)   a general decline in the wages of college graduates over the last decade.
B)   an increasing trend in U.S.labor markets for employers to pay all costs of education and training.
C)   a decrease in the earnings gap between low-skill and high-skill workers over the past two decades.
D)   an increase in the earnings gap between low-skill and high-skill workers over the past two decades.

Question 3

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.

Question 4

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Accepted Answer

The theory of signaling suggests that th...

Question 5

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.

Question 6

Other things equal,when the supply of workers is low,one would predict that market wages would be

Accepted Answer

A)   relatively high.
B)   relatively low.
C)   determined solely by factors that affect demand.
D)   determined outside the domain of economic theory.

Question 7

A difference in wages that reflects differences in the nonpay features of two jobs is called

Accepted Answer

A)   a compensating differential.
B)   a wage adjustment.
C)   an efficiency wage.
D)   a minimum wage.

Question 8

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Accepted Answer

A)   the demand for female labor to be lower than the demand for male labor.
B)   the demand for female labor to be higher than the demand for male labor.
C)   the supply of female labor to be lower than the demand for male labor.
D)   the supply of female labor to be higher than the supply of male labor.

Question 9

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.

Question 10

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.

Question 11

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 12

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 13

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Accepted Answer

A)   men were better at adding than women.
B)   women chose the tournament payoff scheme more than men.
C)   75% of men thought they won the four-player tournament part of the experiment.
D)   demonstrated that women face significant wage discrimination in stock brokerages..

Question 14

Which of the following can be used to help explain wage differences among different groups of workers?

Accepted Answer

A)   human capital acquired through education
B)   human capital acquired through job experience
C)   compensating differentials
D)   All of the above can explain wage differences.

Question 15

Which of the following is an example of human capital?

Accepted Answer

A)   Machines built by people.
B)   Formal education acquired in schools.
C)   On-the-job training.
D)   Both b and c are correct.

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 kinds of work they are willing and able to do.

Accepted Answer

A) True 
 B)False

Question 17

On average,electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines.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.

Question 18

Which of the following is not an example of changing employment trends?

Accepted Answer

A)   The number of people wanting to work in the personal services sector in the U.S.is increasing.
B)   Employment in the U.S.agricultural sector has declined by about 30 percentage points in the last century.
C)   Technological advances have replaced a great many routine jobs in the U.S.such as bank tellers and telephone operators.
D)   Employment in the U.S.manufacturing sector has declined,while employment in manufacturing has increased worldwide.

Question 19

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Accepted Answer

A)   natural ability.
B)   geographic location of employment.
C)   chance.
D)   work effort.

Question 20

The term "compensating differential" refers to

Accepted Answer

A)   the fact that workers who do similar work should be paid the same wage.
B)   the fact that some workers live further from their jobs than do other workers.
C)   a wage difference that is distinguishable on the basis of monetary characteristics.
D)   a wage difference that arises from nonmonetary characteristics of different jobs.

Exam 19: Earnings and Discrimination

The term "compensating differential" refers to

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

Which of the following is an example of human capital?

Correct Answer
verified

A difference in wages that reflects differences in the nonpay features of two jobs is called

Correct Answer
verified

Which of the following is not an example of changing employment trends?

Correct Answer
verified

Other things equal,when the supply of workers is low,one would predict that market wages would be

Correct Answer
verified

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 kinds of work they are willing and able to do.

Correct Answer
verified

Correct Answer
verified

A college degree makes a person more productive according to

Correct Answer
verified

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

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

If employers are profit-maximizers,then

Correct Answer
verified

On average,electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines.The difference in pay is attributed to

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

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct Answer
verified

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Correct Answer
verified

Economists who study labor markets have documented

Correct Answer
verified

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Correct Answer
verified

Which of the following can be used to help explain wage differences among different groups of workers?

Correct Answer
verified

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Correct Answer
verified
The theory of signaling suggests that th...
View Answer

Exam 19: Earnings and Discrimination

The term "compensating differential" refers to

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

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

A difference in wages that reflects differences in the nonpay features of two jobs is called

Correct AnswerverifiedShow Answer

Which of the following is not an example of changing employment trends?

Correct AnswerverifiedShow Answer

Other things equal,when the supply of workers is low,one would predict that market wages would be

Correct AnswerverifiedShow Answer

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 kinds of work they are willing and able to do.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A college degree makes a person more productive according to

Correct AnswerverifiedShow Answer

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

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

If employers are profit-maximizers,then

Correct AnswerverifiedShow Answer

On average,electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines.The difference in pay is attributed to

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

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct AnswerverifiedShow Answer

Assume men,on balance,have lower amounts of human capital than women have.Then we would expect

Correct AnswerverifiedShow Answer

Economists who study labor markets have documented

Correct AnswerverifiedShow Answer

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Correct AnswerverifiedShow Answer

Which of the following can be used to help explain wage differences among different groups of workers?

Correct AnswerverifiedShow Answer

Explain the theory that education acts as a signaling device.How does this contrast with the theory of education as an investment in human capital?

Correct AnswerverifiedThe theory of signaling suggests that th...View AnswerShow Answer

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Job experience,education,lifet...
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Correct Answer
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The theory of signaling suggests that th...
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