Question 1

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) None of the above
F) A) and C)

Question 2

In 1913,the Ford Motor Company decided to pay its employees $5 a day.This wage was significantly higher than what any other organization offered.Henry Ford believed that this wage would make his employees happier,increase their productivity,and lower employee turnover.Economists would say that Mr.Ford offered his employees

Accepted Answer

A)   a union.
B)   an efficiency wage.
C)   a diminishing rate of marginal return.
D)   a leisure wage.E) A) and B)
F) A) and C)

Question 3

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Accepted Answer

A)   they don't believe the wage differential really exists.
B)   they can't agree on a definition of the term "discrimination."
C)   they believe compensating differentials account for all wage differences.
D)   different people may have different wages for reasons unrelated to discrimination.E) A) and D)
F) C) and D)

Question 4

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) A) and B)
F) A) and C)

Question 5

Which of these instances would constitute labor-market discrimination? Traci and Carol are identical in all of their labor-market characteristics except that Traci earns a higher salary than Carol because

Accepted Answer

A)   Traci is beautiful and Carol is not.
B)   Traci is 40 years old and Carol is 60 years old.
C)   Traci works the night shift and Carol works the day shift.
D)   Traci has 15 years of experience and Carol has 10 years of experience.E) B) and D)
F) None of the above

Question 6

Many kindergarten teachers have advanced education degrees,yet they have lower average earnings than other individuals with similar education levels.A potential explanation for the differences in earnings is that kindergarten teachers

Accepted Answer

A)   have more pleasant working conditions.
B)   have less pleasant working conditions.
C)   work longer hours.
D)   must pass certification tests.E) A) and D)
F) B) and D)

Question 7

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock,whereas Nick prefers to work in an air-conditioned office.The difference in salary could illustrate a compensating differential.

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Accepted Answer

A)   more international travel to dangerous locations.
B)   two night shifts per month.
C)   careful handling of toxic chemicals.
D)   an advanced degree.E) A) and C)
F) B) and D)

Question 10

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 11

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?

Accepted Answer

A)   Yes, because the experience gained during the internship would increase the student's human capital.
B)   No, because the opportunity cost is too high.
C)   No, because the student is signaling to future employers that he or she is willing to accept low wages.
D)   Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.E) A) and B)
F) A) and C)

Question 12

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Accepted Answer

A)   coal mining is a declining industry.
B)   coal mining jobs are potentially more dangerous than jobs with comparable education requirements.
C)   all coal mines use nonunion labor.
D)   coal imports are rising.E) A) and D)
F) A) and C)

Question 13

The return to investment in human capital is observed

Accepted Answer

A)   only when workers are assigned identical tasks.
B)   in the wage differential between workers.
C)   in the high school dropout rate in inner-city urban school districts.
D)   in the low wages of educated factory workers.E) A) and B)
F) None of the above

Question 14

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) A) and C)

Question 15

Efficiency wages will raise the quantity of labor supplied to the market.

Accepted Answer

A) True 
 B)False

Question 16

According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Accepted Answer

A)   an author.
B)   an auto mechanic.
C)   a singer.
D)   an advice columnist.E) None of the above
F) A) and B)

Question 17

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.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) A) and B)
F) None of the above

Question 18

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The 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) C) and D)

Question 19

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) C) and D)

Question 20

Economists found evidence of discrimination in each of the following markets except

Accepted Answer

A)   1960s baseball games
B)   baseball cards
C)   live basketball games in the 1980s
D)   current era baseball gamesE) A) and B)
F) None of the above

Exam 19: Earnings and Discrimination.

Many kindergarten teachers have advanced education degrees,yet they have lower average earnings than other individuals with similar education levels.A potential explanation for the differences in earnings is that kindergarten teachers

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

Correct Answer
verified

The return to investment in human capital is observed

Correct Answer
verified

Efficiency wages will raise the quantity of labor supplied to the market.

Correct Answer
verified

Correct Answer
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Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?

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

Correct Answer
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According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Correct Answer
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Economists found evidence of discrimination in each of the following markets except

Correct Answer
verified

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.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

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Correct Answer
verified

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Correct Answer
verified

Which of these instances would constitute labor-market discrimination? Traci and Carol are identical in all of their labor-market characteristics except that Traci earns a higher salary than Carol because

Correct Answer
verified

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock,whereas Nick prefers to work in an air-conditioned office.The difference in salary could illustrate a compensating differential.

Correct Answer
verified

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

Correct Answer
verified

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as

Correct Answer
verified

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

Correct Answer
verified

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Correct Answer
verified

The superstar phenomenon applies to

Correct Answer
verified

Exam 19: Earnings and Discrimination.

Many kindergarten teachers have advanced education degrees,yet they have lower average earnings than other individuals with similar education levels.A potential explanation for the differences in earnings is that kindergarten teachers

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The return to investment in human capital is observed

Correct AnswerverifiedShow Answer

Efficiency wages will raise the quantity of labor supplied to the market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm.Unfortunately for the student,the internship is unpaid.Is it ever economically beneficial to accept an unpaid job?

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

According to the superstar phenomenon,the most talented person in the following occupations is likely to earn extremely high wages except

Correct AnswerverifiedShow Answer

Economists found evidence of discrimination in each of the following markets except

Correct AnswerverifiedShow Answer

Bill and Hillary both work for the same bakery.Bill is an expert pastry chef who begins baking at 4a.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

The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that

Correct AnswerverifiedShow Answer

Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

Correct AnswerverifiedShow Answer

Which of these instances would constitute labor-market discrimination? Traci and Carol are identical in all of their labor-market characteristics except that Traci earns a higher salary than Carol because

Correct AnswerverifiedShow Answer

Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock,whereas Nick prefers to work in an air-conditioned office.The difference in salary could illustrate a compensating differential.

Correct AnswerverifiedShow Answer

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

Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Politicians often point to wage differentials as evidence of labor market discrimination against ethnic minorities and women.Economists,however,argue against this approach because

Correct AnswerverifiedShow Answer

The superstar phenomenon applies to

Correct AnswerverifiedShow Answer

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