Question 1

If a good is produced with technology that allows the best producer to supply every customer at a low cost and every customer in the market wants to enjoy the good supplied by the best producer, the best producer will be called a

Accepted Answer

The answer of If a good is produced with technology...

Question 2

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

Question 3

One example of labor-market discrimination is that a firm may be less likely to interview a job candidate whose resume clearly indicates he is not a good fit for the job.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to

Accepted Answer

A)  the marginal product of labor.
B)  the marginal product of capital.
C)  diminishing marginal returns.
D)  a compensating differential.E) B) and D)
F) All of the above

Question 6

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)  The characteristics of workers, such as their education and experience, the characteristics of jobs, such as their pleasantness or unpleasantness, and the presence or absence of discrimination by employers all determine equilibrium wages.
B)  Labor unions, minimum wage laws, and efficiency wages all may increase wages above their equilibrium level.
C)  Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)  Discrimination by employers against a group of workers may artificially lower wages for that group.E) C) and D)
F) B) and D)

Question 7

The most popular movie stars have high incomes for a number of reasons. One such reason is

Accepted Answer

A)  an ability for almost everyone to enjoy movies at a relatively low cost.
B)  the above-average intellect of the average movie star.
C)  a compensating differential.
D)  a lack of technological advances in the movie industry.E) All of the above
F) None of the above

Question 8

Which theory states that education is correlated with natural ability?

Accepted Answer

The answer of Which theory states that education is correlated...

Question 9

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 education.
B)  is willing to work the night shift.
C)  is a man, whereas worker B is a woman.
D)  has better performance reviews, indicating higher productivity.E) C) and D)
F) B) and D)

Question 10

Table 19-1  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Accepted Answer

A)  increased by 35% while the salary gap among men increased by 42%.
B)  more than doubled while the salary gap among men rose significantly but less than doubled.
C)  increased, but the salary gap among men decreased.
D)  decreased, but the salary gap among men increased.E) All of the above
F) A) and C)

Question 11

The very high pay earned by the best actors and actresses is partially explained by the fact that

Accepted Answer

A)  they benefit from a compensating differential.
B)  moviegoers all want to see the very best actors, not second-rate actors.
C)  they have acting degrees from accredited acting schools.
D)  the supply of good actors is very large.E) All of the above
F) B) and D)

Question 12

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 13

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Accepted Answer

A)  a compensating differential.
B)  an inefficiency wage.
C)  the equilibrium difference.
D)  a union wage.E) A) and B)
F) B) and C)

Question 14

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) A) and B)
F) B) and D)

Question 15

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 C)
F) C) and D)

Question 16

Christy and Claudia are aspiring models. Talent scouts consider them to be similarly beautiful. Both enter a talent show. Claudia contracts food poisoning the night before the competition and withdraws. Christy wins the competition and signs a multi-million dollar contract. The differences in their earnings likely reflect

Accepted Answer

A)  discrimination.
B)  differences in human capital.
C)  differences in signaling.
D)  chance.E) B) and C)
F) A) and D)

Question 17

Empirical work that does not account for differences in the productivity of workers

Accepted Answer

A)  is unlikely to find evidence of wage differentials.
B)  can provide strong evidence of labor market discrimination.
C)  is likely to misinterpret apparent evidence of labor market discrimination.
D)  is accepted as superior to empirical work that does correct for differences in productivity of workers.E) A) and C)
F) B) and C)

Question 18

Figure 19-1 
-Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?

Accepted Answer

A)  2 million jobs are gained
B)  no jobs are gained or lost
C)  1 million jobs are lost
D)  3 million jobs are lostE) A) and C)
F) A) and B)

Question 19

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the

Accepted Answer

A)  human capital theory.
B)  discrimination theory.
C)  compensating differential theory.
D)  signaling theory.E) B) and C)
F) C) and D)

Question 20

A signaling theory of education suggests that educational attainment

Accepted Answer

A)  is a signal of high marginal productivity.
B)  is correlated with natural ability.
C)  increases the productivity of low-ability workers.
D)  Both a and b are correct.E) B) and C)
F) A) and B)

Exam 19: Earnings and Discrimination

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

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct Answer
verified

One example of labor-market discrimination is that a firm may be less likely to interview a job candidate whose resume clearly indicates he is not a good fit for the job.

Correct Answer
verified

Empirical work that does not account for differences in the productivity of workers

Correct Answer
verified

If a good is produced with technology that allows the best producer to supply every customer at a low cost and every customer in the market wants to enjoy the good supplied by the best producer, the best producer will be called a

Correct Answer
verified

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

Correct Answer
verified

A signaling theory of education suggests that educational attainment

Correct Answer
verified

Correct Answer
verified

Which of the following statements does not accurately describe the market for labor?

Correct Answer
verified

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

Correct Answer
verified

Which theory states that education is correlated with natural ability?

Correct Answer
verified

Correct Answer
verified

The most popular movie stars have high incomes for a number of reasons. One such reason is

Correct Answer
verified

Correct Answer
verified

Sometimes wages are set above the equilibrium level when

Correct Answer
verified

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to

Correct Answer
verified

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

Correct Answer
verified

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Correct Answer
verified

The very high pay earned by the best actors and actresses is partially explained by the fact that

Correct Answer
verified

Figure 19-1 -Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?

Correct Answer
verified

Exam 19: Earnings and Discrimination

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

A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as

Correct AnswerverifiedShow Answer

One example of labor-market discrimination is that a firm may be less likely to interview a job candidate whose resume clearly indicates he is not a good fit for the job.

Correct AnswerverifiedShow Answer

Empirical work that does not account for differences in the productivity of workers

Correct AnswerverifiedShow Answer

If a good is produced with technology that allows the best producer to supply every customer at a low cost and every customer in the market wants to enjoy the good supplied by the best producer, the best producer will be called a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A signaling theory of education suggests that educational attainment

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements does not accurately describe the market for labor?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which theory states that education is correlated with natural ability?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The most popular movie stars have high incomes for a number of reasons. One such reason is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when

Correct AnswerverifiedShow Answer

Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. From 1975 to 2011, the salary gap among women who graduate from college compared to those who complete only high school

Correct AnswerverifiedShow Answer

The very high pay earned by the best actors and actresses is partially explained by the fact that

Correct AnswerverifiedShow Answer

Figure 19-1 -Refer to Figure 19-1. What is the change in employment of having the minimum wage at $8 instead of $7?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified