FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Earnings and Discrimination

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 131

Multiple Choice

Review LaterAdd Note

Review Later

Scenario 19-4 Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald) and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive. -Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then

A) competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical.
B) the equilibrium wage in the "bald" market will eventually fall.
C) the equilibrium wage in the "hairy" market will eventually rise.
D) wages in the market for barbers can never be in equilibrium.

E) All of the above
F) B) and C)

Correct Answer

verified

Show Answer

Question 132

Multiple Choice

Review LaterAdd Note

Review Later

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

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

E) A) and B)
F) None of the above

Correct Answer

verified

Show Answer

Question 133

Multiple Choice

Review LaterAdd Note

Which of the following is not an example of a compensating differential?

Other things the same, we'd expect that a job with less pleasant working conditions pays

One reason why better-looking workers may have higher earnings is that physical attractiveness is correlated with intelligence.

Scenario 19-2 Travis, a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous national park. -Refer to Scenario 19-2. Travis is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Travis concludes that

Figure 19-3 The manufacturing labor market. -Refer to Figure 19-3. Suppose the manufacturing labor market, which is non-unionized, is in equilibrium at a wage equal to $20. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. After the workers become unionized, how many workers do manufacturing firms collectively hire?

Black men earn an average of 21% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar

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

Chris just completed his college degree from a prestigious university. He did not go to school to become more productive. Rather, he went to school and completed his degree to convey his innate productivity to employers. To which theory of education does he subscribe?

Table 19-2 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-2. What are two possible hypotheses to explain the changes in relative demand for high-skilled workers and low-skilled workers in recent years?

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better- educated workers who have higher marginal productivities.

Mary and Mike are twins who attended grammar school through college together. Both twins got jobs in the same department of an accounting firm. They both work equally hard and have received similar performance reviews. Mary earns $62,000 a year, and Mike earns $80,000 a year. Select the best explanation for this wage difference.

On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be attributed to

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

Experimental evidence indicates women choose less competitive environments than men.

Which of the following is an example of customer discrimination?

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.

What is the term for offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics?