Question 1

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Accepted Answer

A)   discrimination based on race
B)   discrimination in sports
C)   consumer discrimination
D)   discrimination based on educational attainmentE) C) and D)
F) A) and D)

Question 2

A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was

Accepted Answer

A)   a longstanding tradition of racial segregation.
B)   policies implemented by the owners of streetcars.
C)   laws passed by the government.
D)   threats by white people to boycott the streetcars if they were forced to sit with black people.E) A) and B)
F) C) and D)

Question 3

A group of firms working together and acting as a supplier of a product is called a cartel. A group of employees working together and acting as a single supplier of labor is called a

Accepted Answer

The answer of A group of firms working together and...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Accepted Answer

A) True 
 B)False

Question 6

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Accepted Answer

The answer of Unions are often able to sustain wages...

Question 7

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) B) and D)
F) None of the above

Question 8

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) B) and C)
F) B) and D)

Question 9

Discrimination by a manager in the hiring process may be consistent with the decision to maximize profits if

Accepted Answer

A)   customers are willing to pay higher prices in order to maintain the discrimination.
B)   the discrimination is based on race but not gender.
C)   the discrimination is based on gender but not race.
D)   Discrimination is never consistent with profit maximization.E) All of the above
F) C) and D)

Question 10

Which of the following does not affect the wages a worker earns?

Accepted Answer

A)   natural ability
B)   effort
C)   chance
D)   All of the above affect the wages a worker earns.E) A) and B)
F) A) and C)

Question 11

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Accepted Answer

A)   rise, and the wages of skilled labor will fall.
B)   fall, and the wages of skilled labor will rise.
C)   rise, and the wages of skilled labor will rise.
D)   fall, and the wages of skilled labor will fall.E) C) and D)
F) A) and C)

Question 12

Scenario 19-5
Jason works part-time at a grocery store after school. Jason has worked at the store for two years but still hasn't received a wage increase, even though newer employees have received raises. Jason has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Jason believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5. Which of the following statements would weaken Jason's case against his employer?

Accepted Answer

A)   Jason only works part-time; as a result, he has fewer hours of experience even though he has been with the company longer.
B)   Jason doesn't accomplish as much in an hour as other workers doing the same job.
C)   Other workers that got raises moved to the night shift or agreed to work weekends.
D)   All of the above statements would weaken Jason's case.E) A) and B)
F) None of the above

Question 13

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) None of the above
F) B) and D)

Question 14

An effective minimum wage law will increase the quantity of labor demanded.

Accepted Answer

A) True 
 B)False

Question 15

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Accepted Answer

A)   Doctors have the stress of being responsible for other peoples' lives while bankers do not.
B)   Doctors are on call to work nights and weekends, while bankers work traditional business hours.
C)   Doctors must pay for malpractice insurance in case they are sued for a mistake on the job.
D)   All of the above are compensating differentials.E) A) and D)
F) A) and C)

Question 16

Studies of professional sports teams suggest that, in sports, racial discrimination in previous decades was

Accepted Answer

A)   rare.
B)   common and that owners of teams are largely to blame.
C)   common and that customers (fans)  are largely to blame.
D)   None of the above is correct; there are no reliable studies of discrimination in sports due to the difficulties inherent in measuring athletes' productivity.E) B) and C)
F) None of the above

Question 17

The organized withdrawal of labor from a firm by a union is called

Accepted Answer

A)   a strike.
B)   a bargain.
C)   a monopoly.
D)   a tournament.E) None of the above
F) A) and D)

Question 18

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) All of the above
F) A) and B)

Question 19

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

Accepted Answer

A)   has more experience.
B)   is willing to travel two weeks out of each month, whereas worker B will not travel more than three nights a month.
C)   has a special certification that directly relates to her job, whereas worker B does not.
D)   is a young blonde woman, whereas worker B is an older, gray-haired man.E) B) and D)
F) A) and D)

Question 20

Over the past 30 years, the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S. As a result, the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing.

Accepted Answer

A) True 
 B)False

Exam 19: Earnings and Discrimination

A group of firms working together and acting as a supplier of a product is called a cartel. A group of employees working together and acting as a single supplier of labor is called a

Correct Answer
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Correct Answer
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An effective minimum wage law will increase the quantity of labor demanded.

Correct Answer
verified

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

Correct Answer
verified

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct Answer
verified

Studies of professional sports teams suggest that, in sports, racial discrimination in previous decades was

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
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Which of the following does not affect the wages a worker earns?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Correct Answer
verified

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Correct Answer
verified

Discrimination by a manager in the hiring process may be consistent with the decision to maximize profits if

Correct Answer
verified

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

Correct Answer
verified

A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was

Correct Answer
verified

The organized withdrawal of labor from a firm by a union is called

Correct Answer
verified

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Correct Answer
verified

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Correct Answer
verified

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

Correct Answer
verified

Exam 19: Earnings and Discrimination

A group of firms working together and acting as a supplier of a product is called a cartel. A group of employees working together and acting as a single supplier of labor is called a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An effective minimum wage law will increase the quantity of labor demanded.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Human capital refers to the physical tools and equipment that workers use on their jobs to enhance their productivity.

Correct AnswerverifiedShow Answer

Studies of professional sports teams suggest that, in sports, racial discrimination in previous decades was

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

Which of the following does not affect the wages a worker earns?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When firms focus on profit maximization, which form of wage discrimination is least likely to occur?

Correct AnswerverifiedShow Answer

Unions are often able to sustain wages above the equilibrium wage because they can threaten to

Correct AnswerverifiedShow Answer

Discrimination by a manager in the hiring process may be consistent with the decision to maximize profits if

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was

Correct AnswerverifiedShow Answer

The organized withdrawal of labor from a firm by a union is called

Correct AnswerverifiedShow Answer

Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?

Correct AnswerverifiedShow Answer

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Correct AnswerverifiedShow Answer

Which of the following is an example of labor-market discrimination? You may assume that worker A and worker B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A

Correct AnswerverifiedShow Answer

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