Question 1

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4 a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the following could explain the higher wages that Bill earns?

Accepted Answer

A)   The employer is discriminating against women.
B)   The employer is paying a compensating differential for a job that starts very early in the morning.
C)   The employer is rewarding Bill for acquiring the human capital of a pastry chef.
D)   All of the above could be correct.E) B) and C)
F) A) and B)

Question 2

Which of the following could explain the growing gap in income between unskilled and skilled workers in the United States?

Accepted Answer

A)   International trade has increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
B)   Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
C)   Both a and b are correct.
D)   Neither a nor b is correct.E) None of the above
F) All of the above

Question 3

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Accepted Answer

A)   human-capital and price-fixing
B)   human-capital and signaling
C)   wage-differential and derived-demand
D)   cost-allocation and compensating differentialsE) B) and C)
F) A) and C)

Question 4

As a summer job,some teenagers choose to detassle corn,a job requiring long hours walking corn fields in the summer heat.Other teens take jobs working as lifeguards.Given that detassling corn is a more difficult job than working as a lifeguard,we would expect a difference in wages between the two jobs.This difference is known as

Accepted Answer

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

Question 5

Workers who work the night shift are often paid more than those who do identical work on the day shift.This is referred to as a

Accepted Answer

A)   discriminatory wage practice.
B)   compensating differential.
C)   wage inequity.
D)   a market inefficiency.E) C) and D)
F) A) and C)

Question 6

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 7

In recent years,the amount of international trade in which the United States engages has

Accepted Answer

A)   increased,altering the demand for skilled and unskilled labor.
B)   decreased a little,altering the demand for skilled and unskilled labor.
C)   decreased substantially,altering the demand for skilled and unskilled labor.
D)   remained fairly constant;thus,the demand for skilled and unskilled labor is unchanged.E) B) and C)
F) All of the above

Question 8

Which of the following best summarizes the conclusion of a 1986 study of segregated streetcars in southern cities?

Accepted Answer

A)   Business owners are usually more interested in making profit than in discriminating against a particular group.
B)   Government intervention is usually necessary to force business owners to end discriminatory practices.
C)   Market forces and profit motives are usually not strong enough to prompt firms to stop discriminating against a particular group.
D)   Consumer discrimination is a much larger problem than employer discrimination.E) A) and B)
F) A) and C)

Question 9

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Accepted Answer

A)   will increase only if the company can increase the price of its product.
B)   is likely to increase.
C)   is likely to decrease.
D)   will not change.E) B) and C)
F) A) and D)

Question 10

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Accepted Answer

A) True 
 B)False

Question 11

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of wages,educational attainment,and gender?

Accepted Answer

A)   Male workers are compensated for attending college,while female workers generally are not.
B)   Female workers are compensated for attending college,while male workers generally are not.
C)   Both genders receive a higher wage for attending college.
D)   Neither gender receives a higher wage for attending college.E) A) and B)
F) A) and C)

Question 13

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Accepted Answer

A)   unrestricted entry and exit in markets.
B)   lower costs of hiring.
C)   a perfectly elastic market demand.
D)   customer preferences.E) B) and C)
F) A) and D)

Question 14

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Accepted Answer

The answer of The theory of education that states firms...

Question 15

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Accepted Answer

A)   remained roughly constant for both men and women.
B)   widened for both men and women.
C)   widened for men and narrowed for women.
D)   narrowed for men and widened for women.E) All of the above
F) B) and C)

Question 16

Table 19-1
  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1.What conclusion can you draw about the change in the gap in earnings between skilled and unskilled workers between 1980 and 2008?

Accepted Answer

The gap ha...

Question 17

Sometimes wages are set above the equilibrium level when

Accepted Answer

A)   garbage collectors earn higher wages than secretaries due to compensating differentials.
B)   accountants earn more than dental technicians due to higher educational requirements.
C)   movie superstars earn more than talented plumbers.
D)   unions negotiate higher wages by threatening to strike.E) B) and D)
F) B) and C)

Question 18

Evidence from a study of the market for baseball players using 1960s data

Accepted Answer

A)   indicated that sports with strong player associations are unlikely to experience wage discrimination.
B)   suggested that government regulation had eliminated most evidence of wage discrimination.
C)   found some evidence of consumer-driven wage discrimination.
D)   found that measurement of marginal productivity was very difficult for baseball players.E) A) and B)
F) A) and D)

Question 19

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Accepted Answer

A)   laws that required such segregation.
B)   long-standing southern traditions about which the law was silent.
C)   streetcar firms trying to maximize profits.
D)   streetcar firms trying to minimize costs.E) A) and C)
F) A) and D)

Question 20

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

Evidence from a study of the market for baseball players using 1960s data

Correct Answer
verified

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct Answer
verified

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1.What conclusion can you draw about the change in the gap in earnings between skilled and unskilled workers between 1980 and 2008?

Correct Answer
verified
The gap ha...
View Answer

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Correct Answer
verified

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Correct Answer
verified

Correct Answer
verified

In recent years,the amount of international trade in which the United States engages has

Correct Answer
verified

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Correct Answer
verified

Workers who work the night shift are often paid more than those who do identical work on the day shift.This is referred to as a

Correct Answer
verified

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Correct Answer
verified

Which of the following could explain the growing gap in income between unskilled and skilled workers in the United States?

Correct Answer
verified

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Correct Answer
verified

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4 a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the following could explain the higher wages that Bill earns?

Correct Answer
verified

Sometimes wages are set above the equilibrium level when

Correct Answer
verified

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Correct Answer
verified

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Correct Answer
verified

Which of the following statements is true of wages,educational attainment,and gender?

Correct Answer
verified

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Correct Answer
verified

Which of the following best summarizes the conclusion of a 1986 study of segregated streetcars in southern cities?

Correct Answer
verified

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Evidence from a study of the market for baseball players using 1960s data

Correct AnswerverifiedShow Answer

Some discriminatory hiring practices can be expected,even if markets are competitive,as a result of

Correct AnswerverifiedShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1.What conclusion can you draw about the change in the gap in earnings between skilled and unskilled workers between 1980 and 2008?

Correct AnswerverifiedThe gap ha...View AnswerShow Answer

The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Correct AnswerverifiedShow Answer

In the early twentieth century,streetcars in many southern cities were segregated by race.This racial segregation was the result of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In recent years,the amount of international trade in which the United States engages has

Correct AnswerverifiedShow Answer

Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once.

Correct AnswerverifiedShow Answer

Workers who work the night shift are often paid more than those who do identical work on the day shift.This is referred to as a

Correct AnswerverifiedShow Answer

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Correct AnswerverifiedShow Answer

Which of the following could explain the growing gap in income between unskilled and skilled workers in the United States?

Correct AnswerverifiedShow Answer

Traci is a nurse,and she gets paid an additional $1.00 per hour for agreeing to work the night shift.Carol is also a nurse,but she works the day shift and does not get paid this extra dollar per hour.This difference in pay is an example of a compensating differential.

Correct AnswerverifiedShow Answer

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4 a.m.Hillary is a bookkeeper who works a regular 9-5 work day.Bill earns twice as much as Hillary.Which of the following could explain the higher wages that Bill earns?

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when

Correct AnswerverifiedShow Answer

When robots are used to replace workers on a factory production line,the wage gap between skilled and unskilled workers

Correct AnswerverifiedShow Answer

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

Correct AnswerverifiedShow Answer

Which of the following statements is true of wages,educational attainment,and gender?

Correct AnswerverifiedShow Answer

Over the last several years,the earnings gap between workers with college degrees and workers with high school degrees has

Correct AnswerverifiedShow Answer

Which of the following best summarizes the conclusion of a 1986 study of segregated streetcars in southern cities?

Correct AnswerverifiedShow Answer

A compensating differential is a difference in wages due to higher levels of education or other forms of human capital.

Correct AnswerverifiedShow Answer

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The gap ha...
View Answer

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