Question 1

Which of the following is considered human capital?

Accepted Answer

A)  the ingredients a chef uses to prepare meals
B)  the pots and pans and other tools a chef uses to prepare meals
C)  the financial capital a chef uses to start his own restaurant
D)  the skills a chef learns when attending a class about cake decoratingE) A) and B)
F) A) and C)

Question 2

Scenario 19-3
In the small town of Hamilton, Montana, there is a local hardware store called Eddy's Hardware. There are only two types of workers who apply for jobs at Eddy's Hardware: cowboys and farm boys. Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against farm boys. Eddy's Hardware denies the complaint and says the store is only trying to maximize profit.
-Refer to Scenario 19-3. Which of the following statements would weaken the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)  Farm boys are more productive than cowboys.
B)  Farm boys work longer hours than cowboys and their effort is greater.
C)  Farm boys are generally less educated than cowboys in the field of hardware.
D)  All of the above would weaken the discrimination complaint.E) B) and C)
F) None of the above

Question 3

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

Accepted Answer

A)  Two workers with different levels of on-the-job training earn different salaries.
B)  Two workers whose jobs entail different working conditions earn different salaries.
C)  Two workers whose jobs require different levels of technical expertise earn different salaries.
D)  Two workers with different levels of natural ability earn different salaries.E) A) and B)
F) A) and C)

Question 4

The accumulation of investments in people, such as education and on-the-job training, is known as

Accepted Answer

A)  physical capital.
B)  human capital.
C)  efficiency wage.
D)  compensating differentials.E) None of the above
F) All of the above

Question 5

A consensus view among economists regarding the possibility of labor-market discrimination is that

Accepted Answer

A)  most wage differences among groups are attributable to discrimination.
B)  many employers use compensating differentials to hide discriminatory practices.
C)  wage differences among groups are not sufficient by themselves to determine how much discrimination there is.
D)  all wage differences among groups are attributable to differences in human capital and compensating differentials.E) A) and D)
F) A) and C)

Question 6

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.E) B) and D)
F) A) and B)

Question 7

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may include job ...

Question 8

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

Question 9

In the early twentieth century, racial segregation of streetcars in the southern cities was largely opposed by

Accepted Answer

A)  streetcar firms.
B)  government officials.
C)  Federal lawyers applying the Sherman antitrust laws.
D)  consumers.E) A) and B)
F) A) and C)

Question 10

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Accepted Answer

A)  The employer will be just as efficient as a nondiscriminating employer.
B)  The employer will face higher costs than firms that focus only on maximizing profits.
C)  The employer will immediately go out of business because discrimination is illegal.
D)  The employer will face union strikes.E) B) and C)
F) All of the above

Question 11

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market. We deviate from that assumption, however, when we consider

Accepted Answer

A)  the superstar phenomenon.
B)  the theory of efficiency wages.
C)  compensating differentials.
D)  differences in educational attainment.E) B) and D)
F) A) and D)

Question 12

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Accepted Answer

A)  Workers in the market are unskilled and not represented by a union, and their wage exceeds both the equilibrium wage and the minimum wage.
B)  Workers in the market are highly skilled and not represented by a union, and their wage exceeds the minimum wage.
C)  Workers in the market are highly skilled and represented by a union, and their wage exceeds the equilibrium wage.
D)  Employers in the market are known for reducing the workers' wage whenever they get an opportunity to do so.E) None of the above
F) All of the above

Question 13

Scenario 19-5
Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5. Why might an economist be skeptical of Jason's discrimination complaint?

Accepted Answer

A)  Through antitrust laws, discriminating firms can be penalized with large fees.
B)  Differences in wages alone do not by themself prove discrimination.
C)  Discrimination leads to profit maximization.
D)  Even if customers dislike Jason because he's not helpful, if the store operates in a competitive market the store will pay Jason the same as other workers.E) B) and C)
F) A) and B)

Question 14

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Accepted Answer

A)  some of the wage gap is explained by efficiency wages.
B)  differences in years of work experience likely lead to productivity differences between men and women.
C)  compensating differentials usually lead to higher wages for women.
D)  All of the above are correct.E) None of the above
F) B) and D)

Question 15

Differences in human capital are likely to

Accepted Answer

A)  be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
B)  be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination.
C)  explain some of the differences in average wage rates across age classifications.
D)  explain all of the differences in average wage rates across gender classifications.E) A) and D)
F) A) and B)

Question 16

A union's major source of power is its

Accepted Answer

A)  high-profile leadership.
B)  ability to increase productivity.
C)  ability to threaten a strike.
D)  ability to deny employers the opportunity to bargain over wages.E) B) and D)
F) B) and C)

Question 17

Which of the following is true of minimum-wage laws?

Accepted Answer

A)  They affect skilled workers' wages.
B)  They create above-equilibrium wages for some unskilled workers.
C)  They create a shortage of unskilled labor.
D)  They negatively affect the employment of skilled workers.E) B) and C)
F) All of the above

Question 18

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Accepted Answer

A)  increase workers' productivity and increase their wages.
B)  increase workers' productivity but leave their wages unaffected.
C)  leave workers' productivity unaffected but increase their wages.
D)  leave workers' productivity and wages unaffected.E) A) and B)
F) None of the above

Question 19

"The customer is always right" explains

Accepted Answer

A)  the higher wages paid to members of a union.
B)  compensating differentials.
C)  persistent wage discrimination based on consumer preferences.
D)  All of the above are correct.E) All of the above
F) C) and D)

Question 20

In empirical analyses of factors that help explain wages,

Accepted Answer

A)  effort and ability are not likely to contribute to large differences in wages in the U.S. economy.
B)  economists typically find that measurable factors explain less than half of the variation in wages.
C)  economists typically find few factors that are not explicitly measurable.
D)  unmeasurable influences on wage differences are found to be quite small.E) A) and B)
F) B) and C)

Exam 19: Earnings and Discrimination

Which of the following is considered human capital?

Correct Answer
verified

Which of the following is true of minimum-wage laws?

Correct Answer
verified

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

Correct Answer
verified

In empirical analyses of factors that help explain wages,

Correct Answer
verified

Differences in human capital are likely to

Correct Answer
verified

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market. We deviate from that assumption, however, when we consider

Correct Answer
verified

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Correct Answer
verified

In the early twentieth century, racial segregation of streetcars in the southern cities was largely opposed by

Correct Answer
verified

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Correct Answer
verified

Correct Answer
verified

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Correct Answer
verified

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Correct Answer
verified

Correct Answer
verified
Other factors may include job ...
View Answer

A union's major source of power is its

Correct Answer
verified

Correct Answer
verified

A consensus view among economists regarding the possibility of labor-market discrimination is that

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

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

Correct Answer
verified

"The customer is always right" explains

Correct Answer
verified

The accumulation of investments in people, such as education and on-the-job training, is known as

Correct Answer
verified

Exam 19: Earnings and Discrimination

Which of the following is considered human capital?

Correct AnswerverifiedShow Answer

Which of the following is true of minimum-wage laws?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In empirical analyses of factors that help explain wages,

Correct AnswerverifiedShow Answer

Differences in human capital are likely to

Correct AnswerverifiedShow Answer

Most wage differences can be understood while maintaining the assumption of equilibrium in the labor market. We deviate from that assumption, however, when we consider

Correct AnswerverifiedShow Answer

According to proponents of the signaling theory of education, an increase in the education levels of all workers would

Correct AnswerverifiedShow Answer

In the early twentieth century, racial segregation of streetcars in the southern cities was largely opposed by

Correct AnswerverifiedShow Answer

Which of the following sets of circumstances is likely to provide the best evidence in support of the theory of efficiency wages?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Correct AnswerverifiedShow Answer

Suppose that an employer can hire workers with brown hair and workers with blonde hair. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by hiring only workers with brown hair?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedOther factors may include job ...View AnswerShow Answer

A union's major source of power is its

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A consensus view among economists regarding the possibility of labor-market discrimination is that

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

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

Correct AnswerverifiedShow Answer

"The customer is always right" explains

Correct AnswerverifiedShow Answer

The accumulation of investments in people, such as education and on-the-job training, is known as

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Other factors may include job ...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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