Question 1

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Accepted Answer

A) True 
 B)False

Question 2

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Accepted Answer

A)  America is likely to lose even more manufacturing jobs to China and India.
B)  labor productivity has fallen, which has caused employment to fall as well.
C)  workers who have more education and better problem-solving skills are likely to work in higher-paying jobs.
D)  the pay for personal-service workers is likely to rise.E) A) and D)
F) A) and C)

Question 3

In the early 20th century,streetcar seating which was segregated by race

Accepted Answer

A)  was a result of economic discrimination by railroad company managers.
B)  was less profitable than streetcar seating that didn't have restrictions.
C)  was strongly supported by private streetcar companies.
D)  led to higher revenue and lower costs for streetcar companies.E) B) and C)
F) None of the above

Question 4

Joe is a white 23-year-old male,and Mike is a black 23-year-old male.Both Joe and Mike are economics majors,and they graduated from the same college in the same year with the same GPA.Joe and Mike both got jobs at a brokerage firm after graduating from college.They both work equally hard.Joe earns $38,000 a year,and Mike earns $30,000 a year.Select the best explanation for this wage difference.

Accepted Answer

A)  Joe has more human capital relative to John.
B)  Joe has less human capital relative to John.
C)  Joe has been discriminated against because he is white.
D)  Mike has been discriminated against because he is black.E) None of the above
F) All of the above

Question 5

Evidence of discrimination is most apparent when one compares wages among broad groups.

Accepted Answer

A) True 
 B)False

Question 6

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Accepted Answer

A)  to be very dull.
B)  to be fun.
C)  to be very dangerous.
D)  to require a college degree.E) A) and B)
F) None of the above

Question 7

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Accepted Answer

A)  the inability to calculate wage differentials.
B)  the inability to see changes in the wage differentials over a period of time.
C)  the difficulty in measuring productivity differences between workers.
D)  the difficulty in measuring female labor-force participation.E) B) and C)
F) C) and D)

Question 8

Why is a plumber never likely to be as rich as a movie star?

Accepted Answer

A)  Compensating differential creates a higher wage in the movie business.
B)  There haven't been any significant technological advances in the plumbing industry.
C)  Productivity levels are low in the plumbing industry due to low worker morale.
D)  A plumber can provide his services to only a limited number of customers.E) A) and B)
F) None of the above

Question 9

Business owners who care only about making money are

Accepted Answer

A)  likely to discriminate against certain groups of workers.
B)  likely to be replaced by discriminating businesses.
C)  more concerned about racial discrimination than gender discrimination.
D)  at an advantage when competing against those who practice discrimination.E) C) and D)
F) B) and D)

Question 10

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 cowboys. 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 strengthen the discrimination complaint against Eddy's Hardware? (i) 	farm boys call in sick to work more often than cowboys.
(ii) 	Farm boys' experience with hardware generally exceeds cowboys' experience with hardware.
(iii) 	Many cowboys take six months per year off from work to compete in a rodeo circuit and therefore have less on-the-job experience with a hardware store.

Accepted Answer

A)  (i)  only
B)  (i)  and (iii) 
C)  (ii)  and (iii) 
D)  All of the above would strengthen the discrimination complaint.E) B) and D)
F) A) and D)

Question 11

When an employer pays the cost of educating a worker,it is likely that the employer

Accepted Answer

A)  is demonstrating altruistic motives.
B)  is pursuing some objective other than profit-maximization.
C)  hopes to recapture its investment in the form of increased labor productivity.
D)  receives reimbursement from the government for the cost of the education.E) C) and D)
F) B) and D)

Question 12

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Accepted Answer

A)  The quantity of labor supplied for easy jobs exceeds that for difficult jobs.
B)  The quantity of labor supplied for fun jobs exceeds that for dull jobs.
C)  The quantity of labor supplied for safe jobs exceeds that for dangerous jobs.
D)  All of the above are correct.E) A) and C)
F) B) and D)

Question 13

A computer is an example of productivity-enhancing human capital.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that consumers suddenly prefer to do business with left-handed workers instead of right-handed workers.We would expect that the marginal revenue product of

Accepted Answer

A)  left-handed workers would rise, which would increase the demand for left-handed workers.This will increase the number of left-handed workers employed, which will in turn increase the marginal product of left-handed workers.
B)  left-handed workers would rise, which would increase the demand for left-handed workers.This will increase the number of left-handed workers employed, which will in turn reduce the marginal product of left-handed workers.
C)  right-handed workers would rise, which would increase the demand for right-handed workers.This will increase the number of right-handed workers employed, which will in turn increase the marginal product of right-handed workers.
D)  right-handed workers would fall, which would reduce the demand for right-handed workers.This will reduce the number of right-handed workers employed, which will in turn reduce the marginal product of right-handed workers.E) A) and D)
F) B) and C)

Question 15

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Accepted Answer

A)  the theory of efficiency wages holds true for that market.
B)  there is a powerful labor union representing workers in that market.
C)  workers are largely unskilled and/or inexperienced and minimum-wage laws are effectively holding wages up in that market.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 16

Certain factors that are probably important in determining wages are nevertheless difficult to measure.Consequently,labor economists find those factors difficult to incorporate into their studies of labor markets and wages.Those factors include

Accepted Answer

A)  effort and natural ability.
B)  natural ability and years of experience.
C)  years of experience and job characteristics.
D)  race and job characteristics.E) All of the above
F) A) and D)

Question 17

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Accepted Answer

A)  increase the supply of teachers to this school.
B)  increase wages for teachers at the private school relative to those at public schools.
C)  decrease the marginal product of teachers at the private school.
D)  All of the above are correct.E) C) and D)
F) All of the above

Question 18

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Accepted Answer

A)  The demand for both skilled and unskilled labor has increased.
B)  The demand for both skilled and unskilled labor has decreased.
C)  The demand for skilled labor relative to unskilled labor has risen.
D)  The demand for unskilled labor relative to skilled labor has risen.E) None of the above
F) C) and D)

Question 19

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following? (i) 	Before the passage of laws that mandated segregation of races on streetcars,segregation of smokers and nonsmokers was more common than segregation of races.
(ii) 	The firms that ran the streetcars were unanimous in their support of laws that required segregation of races.
(iii) 	firms that ran the streetcars were more interested in profits than in segregating customers by race.

Accepted Answer

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

Question 20

When the supply of workers is plentiful,one would predict that market wages would be

Accepted Answer

A)  determined outside the domain of economic theory.
B)  determined solely by factors that affect demand.
C)  low, other things equal.
D)  high, other things equal.E) A) and B)
F) A) and C)

Exam 19: Earnings and Discrimination

Business owners who care only about making money are

Correct Answer
verified

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Correct Answer
verified

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Correct Answer
verified

In the early 20th century,streetcar seating which was segregated by race

Correct Answer
verified

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Correct Answer
verified

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Correct Answer
verified

Correct Answer
verified

A computer is an example of productivity-enhancing human capital.

Correct Answer
verified

Correct Answer
verified

Why is a plumber never likely to be as rich as a movie star?

Correct Answer
verified

When an employer pays the cost of educating a worker,it is likely that the employer

Correct Answer
verified

Correct Answer
verified

Suppose that consumers suddenly prefer to do business with left-handed workers instead of right-handed workers.We would expect that the marginal revenue product of

Correct Answer
verified

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct Answer
verified

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Correct Answer
verified

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Correct Answer
verified

Certain factors that are probably important in determining wages are nevertheless difficult to measure.Consequently,labor economists find those factors difficult to incorporate into their studies of labor markets and wages.Those factors include

Correct Answer
verified

When the supply of workers is plentiful,one would predict that market wages would be

Correct Answer
verified

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Correct Answer
verified

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct Answer
verified

Exam 19: Earnings and Discrimination

Business owners who care only about making money are

Correct AnswerverifiedShow Answer

Assuming that all other things are equal,including the wage,which of the following statements is correct?

Correct AnswerverifiedShow Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours per week.The high wages are partially explained by the fact that the job is likely

Correct AnswerverifiedShow Answer

In the early 20th century,streetcar seating which was segregated by race

Correct AnswerverifiedShow Answer

If we were to observe above-equilibrium wages in a particular labor market,then a possible explanation might be that

Correct AnswerverifiedShow Answer

In recent years,the amount of international trade in which the United States engages has increased.Which of the following accurately describes the effect(s) on labor demanded by firms in the United States?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A computer is an example of productivity-enhancing human capital.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why is a plumber never likely to be as rich as a movie star?

Correct AnswerverifiedShow Answer

When an employer pays the cost of educating a worker,it is likely that the employer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that consumers suddenly prefer to do business with left-handed workers instead of right-handed workers.We would expect that the marginal revenue product of

Correct AnswerverifiedShow Answer

Evidence of discrimination is most apparent when one compares wages among broad groups.

Correct AnswerverifiedShow Answer

One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.

Correct AnswerverifiedShow Answer

Based on the widening income gap between "personal-service" workers and "symbolic analysts,"

Correct AnswerverifiedShow Answer

Certain factors that are probably important in determining wages are nevertheless difficult to measure.Consequently,labor economists find those factors difficult to incorporate into their studies of labor markets and wages.Those factors include

Correct AnswerverifiedShow Answer

When the supply of workers is plentiful,one would predict that market wages would be

Correct AnswerverifiedShow Answer

A prestigious private high school requires each of its teachers to have a Ph.D.in the subject they teach.This requirement is likely to

Correct AnswerverifiedShow Answer

One of the problems with calculating the true amount of discrimination that takes place in the market for labor is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified