Question 1

When members of a group enjoy different opportunities that cannot be attributed to differences in ability,

Accepted Answer

A)   discrimination is said to occur
B)   comparable worth laws are ineffective
C)   licensing agreements must be in effect
D)   all wages in the market will be the same
E)   the demand for labor will increaseF) B) and E)
G) All of the above

Question 2

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

Accepted Answer

A)   government restrictions
B)   cost-of-living differentials
C)   labor unions
D)   discrimination
E)   professional organizationsF) A) and E)
G) A) and C)

Question 3

Statistical discrimination refers to

Accepted Answer

A)   the statistical measurement of the effects of prejudice on minorities excluded from employment
B)   the monetary impact of prejudice on minorities,in contrast to the nonmonetary impact
C)   government tracking of the economy-wide impact of discrimination against minorities
D)   using statistics to explain employer discrimination against minorities
E)   exclusion of individuals from an activity due to the probability of behavior in their group rather than personal characteristicsF) A) and D)
G) A) and B)

Question 4

Which of the following would most likely cause a job to command a compensating wage differential?

Accepted Answer

A)   There are barriers to the entry of new workers into the job market.
B)   The job is more dangerous than most other occupations.
C)   Wage rigidity prevents the wage rate from falling to the equilibrium level.
D)   There has been an increase in the price of another input that is substitutable for labor.
E)   The job market is dominated by one large firm.F) All of the above
G) A) and B)

Question 5

-Figure 12-2 depicts demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently negotiates an hourly wage for its members of $20,then the profit-maximizing employment level

Accepted Answer

A)   rises from 6,000 to 10,000
B)   rises from 3,000 to 10,000
C)   drops from 10,000 to 3,000
D)   drops from 6,000 to 3,000
E)   remains unchangedF) C) and D)
G) None of the above

Question 6

The supply of labor to a particular job will be greater the

Accepted Answer

A)   less the social status that is attached to the job
B)   less training is required to perform that job
C)   lower the fringe benefits are of the job
D)   less flexible the work schedules are in the job
E)   higher degree of personal risk involved in the jobF) A) and C)
G) None of the above

Question 7

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then wage rate will tend to

Accepted Answer

A)   rise in both markets
B)   fall in both markets
C)   rise for the union job,but remain unchanged for the nonunion job
D)   fall for the nonunion job,but remain unchanged for the union job
E)   rise for the union job and fall for the nonunion jobF) All of the above
G) C) and D)

Question 8

Consider an economy in which all labor markets are perfectly competitive,all workers are equally able to do any job,and the nonwage attributes of all jobs are equally attractive to all workers.Which of the following would occur in a labor market where the current wage rate exceeds wage rates in alternate markets?

Accepted Answer

A)   Labor demand will decrease,and the equilibrium wage rate will fall.
B)   Labor demand will increase,and the equilibrium wage rate will fall.
C)   Labor demand will increase,and the equilibrium wage rate will rise.
D)   Labor supply will decrease,and the equilibrium wage rate will rise.
E)   Labor supply will increase,and the equilibrium wage rate will fall.F) A) and C)
G) A) and E)

Question 9

Jobs that require more costly training generally have

Accepted Answer

A)   higher wages
B)   lower employment levels
C)   less human capital required
D)   higher personal risk levels
E)   lower wagesF) B) and D)
G) C) and D)

Question 10

Discrimination occurs when a group of people have different opportunities because of characteristics that have nothing to do with their individual abilities.

Accepted Answer

A) True 
 B)False

Question 11

In the long run,those who are hurt by the minimum wage are

Accepted Answer

A)   employers in non-minimum wage industries
B)   employers who have to pay more
C)   consumers who have to pay more for goods
D)   all of theseE) All of the above
F) A) and C)

Question 12

One difficulty with the idea of comparable worth is that

Accepted Answer

A)   it does not address the idea of compensating wage differentials
B)   it would reduce the federal budget deficit
C)   it would cause aggregate wages to fall
D)   a government agency cannot accurately evaluate the many different characteristics of jobs
E)   it would not take into account differences in the supply of labor among firmsF) C) and E)
G) A) and B)

Question 13

If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,

Accepted Answer

A)   physicians' salaries would increase
B)   the supply curve of physicians would shift to the left
C)   physicians' salaries would decrease
D)   the supply curve of physicians would become more inelastic
E)   the supply curve of physicians would become more elasticF) D) and E)
G) B) and E)

Question 14

In the vicious cycle of discrimination,

Accepted Answer

A)   a lower wage causes current job discrimination
B)   a lower wage causes premarket discrimination
C)   premarket discrimination leads directly to current job discrimination
D)   employee discrimination causes employer discrimination
E)   premarket discrimination leads to lower human capital investmentF) A) and E)
G) None of the above

Question 15

Wage differentials exist in the long run because

Accepted Answer

A)   labor markets are perfectly competitive
B)   all jobs are equally attractive to all workers
C)   the prices of goods vary by market
D)   there are too many workers in the labor force
E)   not all workers are equally qualified to perform every jobF) All of the above
G) B) and D)

Question 16

The time spent by students in college

Accepted Answer

A)   leads to lower future wages
B)   is an investment in human capital
C)   decreases human capital by lowering work experience
D)   would be a positive compensating wage differential in markets for student labor
E)   increases as the wage rate risesF) A) and C)
G) C) and D)

Question 17

The Earned Income Tax Credit

Accepted Answer

A)   is targeted to poor families
B)   is less targeted to poor families than the minimum wage
C)   is just a different name for the minimum wage
D)   operates on the labor market in exactly the same as the minimum wageE) C) and D)
F) B) and D)

Question 18

Which of the following is a form of statistical discrimination?

Accepted Answer

A)   Young people are charged higher automobile insurance rates due to the higher probability of an accident.
B)   Restaurants prefer to hire women than men as servers.
C)   Women prefer to see a female doctor than a male doctor.
D)   Women are more likely than men to pay too much money for a new automobile because salespeople bargain more with men than with women.
E)   Female physicians earn 20 percent less than male physicians,on average.F) None of the above
G) A) and E)

Question 19

Each of the following,except one,is an example of a nonmonetary job characteristic.Which is the exception?

Accepted Answer

A)   the monthly wage
B)   safety
C)   potential for advancement
D)   required physical exertion
E)   leisure activities available in the surrounding communityF) A) and B)
G) A) and C)

Question 20

One explanation for the existence of wage differentials in the long run is that

Accepted Answer

A)   not every job is equally appealing to all workers
B)   all labor markets are perfectly competitive
C)   workers are equally able to perform every job
D)   the number of workers varies by market
E)   population trends influence the demand for laborF) None of the above
G) B) and E)

Exam 12: labor Markets: Part A

Each of the following,except one,is an example of a nonmonetary job characteristic.Which is the exception?

Correct Answer
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-Figure 12-2 depicts demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently negotiates an hourly wage for its members of $20,then the profit-maximizing employment level

Correct Answer
verified

The time spent by students in college

Correct Answer
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Discrimination occurs when a group of people have different opportunities because of characteristics that have nothing to do with their individual abilities.

Correct Answer
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In the long run,those who are hurt by the minimum wage are

Correct Answer
verified

Wage differentials exist in the long run because

Correct Answer
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One explanation for the existence of wage differentials in the long run is that

Correct Answer
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The supply of labor to a particular job will be greater the

Correct Answer
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The Earned Income Tax Credit

Correct Answer
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Jobs that require more costly training generally have

Correct Answer
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Which of the following would most likely cause a job to command a compensating wage differential?

Correct Answer
verified

Correct Answer
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Which of the following is a form of statistical discrimination?

Correct Answer
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If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,

Correct Answer
verified

When members of a group enjoy different opportunities that cannot be attributed to differences in ability,

Correct Answer
verified

In the vicious cycle of discrimination,

Correct Answer
verified

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

Correct Answer
verified

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then wage rate will tend to

Correct Answer
verified

One difficulty with the idea of comparable worth is that

Correct Answer
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Statistical discrimination refers to

Correct Answer
verified

Exam 12: labor Markets: Part A

Each of the following,except one,is an example of a nonmonetary job characteristic.Which is the exception?

Correct AnswerverifiedShow Answer

-Figure 12-2 depicts demand and supply in a nonunionized labor market.The original equilibrium is at point A.If a labor union subsequently negotiates an hourly wage for its members of $20,then the profit-maximizing employment level

Correct AnswerverifiedShow Answer

The time spent by students in college

Correct AnswerverifiedShow Answer

Discrimination occurs when a group of people have different opportunities because of characteristics that have nothing to do with their individual abilities.

Correct AnswerverifiedShow Answer

In the long run,those who are hurt by the minimum wage are

Correct AnswerverifiedShow Answer

Wage differentials exist in the long run because

Correct AnswerverifiedShow Answer

One explanation for the existence of wage differentials in the long run is that

Correct AnswerverifiedShow Answer

The supply of labor to a particular job will be greater the

Correct AnswerverifiedShow Answer

The Earned Income Tax Credit

Correct AnswerverifiedShow Answer

Jobs that require more costly training generally have

Correct AnswerverifiedShow Answer

Which of the following would most likely cause a job to command a compensating wage differential?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a form of statistical discrimination?

Correct AnswerverifiedShow Answer

If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,

Correct AnswerverifiedShow Answer

When members of a group enjoy different opportunities that cannot be attributed to differences in ability,

Correct AnswerverifiedShow Answer

In the vicious cycle of discrimination,

Correct AnswerverifiedShow Answer

Each of the following,except one,might be a barrier to entry into a labor market.Which is the exception?

Correct AnswerverifiedShow Answer

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate.All workers are equally able to do either job.Initially,both labor markets are perfectly competitive.If a union organizes workers in one of the markets,then wage rate will tend to

Correct AnswerverifiedShow Answer

One difficulty with the idea of comparable worth is that

Correct AnswerverifiedShow Answer

Statistical discrimination refers to

Correct AnswerverifiedShow Answer

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