Question 1

In a recent U.S.presidential campaign,a lobbyist for a prominent national women's organization made the claim that women in the United States earn $0.60 for every $1.00 earned by a man.A reporter,who was prepared for this statement,asked the lobbyist why wages paid to the organization's secretarial staff (all of whom were women)were significantly below the national average if they were truly interested in raising the rates of compensation for women.If you were the lobbyist,how would you have answered this question? Do you think your answer is convincing? Explain.

Accepted Answer

The lobbyist would likely respond by cit...

Question 2

According to the Hamermesh and Biddle study,people deemed more attractive than average earn

Accepted Answer

A)   30-40 percent more than unattractive people.
B)   about 5 percent more than average looking people.
C)   the same as average looking people and 15-20 percent more than unattractive people.
D)   25 percent more than average looking people and 50 percent more than unattractive people.E) A) and B)
F) B) and C)

Question 3

Which of the following is the most important contributor to human capital?

Accepted Answer

A)   education
B)   effort
C)   chance
D)   physical strengthE) A) and B)
F) B) and C)

Question 4

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Accepted Answer

A)   10% more than men with a high school education.
B)   25% more than men with a high school education.
C)   63% more than men with a high school education.
D)   88% more than men with a high school education.E) A) and D)
F) C) and D)

Question 5

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 6

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Accepted Answer

A)   the theory of compensating differentials
B)   the efficient-market hypothesis
C)   human-capital theory
D)   signaling theoryE) B) and C)
F) B) and D)

Question 7

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Accepted Answer

A)   One hypothesis emphasizes education,and the other emphasizes random influences.
B)   One hypothesis emphasizes education,and the other emphasizes supply and demand.
C)   One hypothesis emphasizes international trade,and the other emphasizes technology.
D)   One hypothesis emphasizes signaling,and the other emphasizes education.E) B) and C)
F) A) and D)

Question 8

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.E) C) and D)
F) A) and C)

Question 9

Effective minimum-wage laws will most likely

Accepted Answer

A)   increase demand for labor.
B)   create a surplus of labor.
C)   increase incomes for all unskilled workers.
D)   decrease incomes for all unskilled workers.E) None of the above
F) A) and C)

Question 10

The superstar phenomenon applies to

Accepted Answer

A)   all famous people equally.
B)   workers receiving a compensating wage differential.
C)   markets where technology allows the best producer to supply every customer at a low cost.
D)   markets where a small group of workers produce a much higher quality product than the average worker.E) A) and D)
F) A) and C)

Question 11

That some schools direct females away from science and math courses is evidence of

Accepted Answer

A)   labor-market discrimination
B)   discrimination that occurs prior to people entering the labor market
C)   discrimination by customers
D)   discrimination by employersE) B) and C)
F) A) and B)

Question 12

In order to explain the widening gap in earnings between skilled and unskilled workers in recent years,economists have proposed two hypotheses.One hypothesis emphasizes

Accepted Answer

A)   compensating differentials.
B)   the increased recognition that a larger stock of human capital usually leads to higher earnings.
C)   the decreasing importance of labor unions.
D)   the increasing importance of international trade.E) B) and D)
F) None of the above

Question 13

Which of the following comparisons best illustrates a compensating differential?

Accepted Answer

A)   John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's.
B)   Beth's wage is higher than Bill's because Beth is very personable,and Bill is very gruff.
C)   Karl's wage is higher than Kay's because Karl's job may cause long-term health problems,and Kay's job will not impair her health.
D)   All of the above are good illustrations of compensating differentials.E) C) and D)
F) None of the above

Question 14

Increases in international trade and technological change have been offered as explanations for the

Accepted Answer

A)   increase in demand for both skilled and unskilled workers in the United States.
B)   increase in demand for skilled workers and decrease in demand for unskilled workers in the United States.
C)   decrease in demand for skilled workers an increase in demand for skilled workers in the United States.
D)   decrease in demand for both skilled and unskilled workers.E) C) and D)
F) All of the above

Question 15

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Accepted Answer

A)   employer-matching 401k retirement plan contributions
B)   tuition reimbursement for workers who take college classes
C)   on-site day care
D)   health insuranceE) A) and B)
F) None of the above

Question 16

Wage differences that can't be explained by the number of years of training could result from

Accepted Answer

A)   demand but not supply.
B)   supply but not demand.
C)   compensating differentials.
D)   the marginal product of capital.E) A) and C)
F) None of the above

Question 17

Over the past several years,the earnings gap between high-skilled and low-skilled workers has (i) 
Narrowed because the demand for unskilled labor has risen over time relative to the demand for skilled labor.
(ii) 
Widened because the demand for skilled labor has risen over time relative to the demand for unskilled labor.
(iii) 
Narrowed because the supply of unskilled labor has risen over time relative to the supply of skilled labor.
(iv) 
Widened because the supply of skilled labor has risen over time relative to the supply of unskilled labor.

Accepted Answer

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

Question 18

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Accepted Answer

A)   Albert,who prefers to be around other people but who works at home by himself
B)   Amy,whose job provides little intellectual and personal satisfaction
C)   Antoinette,whose preference is to avoid dangerous work but works as a firefighter
D)   Arnold,who works the night shift and prefers to work at night and sleep during the dayE) None of the above
F) A) and D)

Question 19

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Accepted Answer

A)   women choose competitive environments more than men.
B)   women and men choose competitive environments equally.
C)   women choose competitive environments less than men.
D)   women are just as likely as men to have high-paying corporate jobs.E) A) and B)
F) All of the above

Question 20

According to the signaling theory of education,better-educated workers

Accepted Answer

A)   are likely to be high-ability workers.
B)   improve their marginal productivity through education.
C)   are in scarce supply in less developed countries.
D)   can only find low-skilled jobs due to technology.E) A) and B)
F) All of the above

Exam 19: Earnings and Discrimination

Correct Answer
verified

The superstar phenomenon applies to

Correct Answer
verified

According to the signaling theory of education,better-educated workers

Correct Answer
verified

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Correct Answer
verified

That some schools direct females away from science and math courses is evidence of

Correct Answer
verified

Which of the following is the most important contributor to human capital?

Correct Answer
verified

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Correct Answer
verified

According to the Hamermesh and Biddle study,people deemed more attractive than average earn

Correct Answer
verified

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Correct Answer
verified

Wage differences that can't be explained by the number of years of training could result from

Correct Answer
verified

Increases in international trade and technological change have been offered as explanations for the

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

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Correct Answer
verified

In order to explain the widening gap in earnings between skilled and unskilled workers in recent years,economists have proposed two hypotheses.One hypothesis emphasizes

Correct Answer
verified

Correct Answer
verified
The lobbyist would likely respond by cit...
View Answer

Effective minimum-wage laws will most likely

Correct Answer
verified

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Correct Answer
verified

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct Answer
verified

A college degree makes a person more productive according to

Correct Answer
verified

Which of the following comparisons best illustrates a compensating differential?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Correct AnswerverifiedShow Answer

The superstar phenomenon applies to

Correct AnswerverifiedShow Answer

According to the signaling theory of education,better-educated workers

Correct AnswerverifiedShow Answer

As a result of their experiment economists Muriel Niederle and Lise Vesterlund found that

Correct AnswerverifiedShow Answer

That some schools direct females away from science and math courses is evidence of

Correct AnswerverifiedShow Answer

Which of the following is the most important contributor to human capital?

Correct AnswerverifiedShow Answer

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,we would expect Tom not to offer which of the following company benefits?

Correct AnswerverifiedShow Answer

According to the Hamermesh and Biddle study,people deemed more attractive than average earn

Correct AnswerverifiedShow Answer

Between 1980 and 2008,the wage gap between men with a high school education and men with a college education has increased.In particular,in 2008 men with a college degree earned about

Correct AnswerverifiedShow Answer

Wage differences that can't be explained by the number of years of training could result from

Correct AnswerverifiedShow Answer

Increases in international trade and technological change have been offered as explanations for the

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

Who among the following individuals most likely experiences the largest nonmonetary reward as a supplier of labor? Assume all of the four individuals have the same level of education and work the same number of hours per week.

Correct AnswerverifiedShow Answer

In order to explain the widening gap in earnings between skilled and unskilled workers in recent years,economists have proposed two hypotheses.One hypothesis emphasizes

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe lobbyist would likely respond by cit...View AnswerShow Answer

Effective minimum-wage laws will most likely

Correct AnswerverifiedShow Answer

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

Correct AnswerverifiedShow Answer

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

Correct AnswerverifiedShow Answer

A college degree makes a person more productive according to

Correct AnswerverifiedShow Answer

Which of the following comparisons best illustrates a compensating differential?

Correct AnswerverifiedShow Answer

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The lobbyist would likely respond by cit...
View Answer

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