Question 1

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) A) and B)

Question 2

The wage difference between jobs that require education and those that don't

Accepted Answer

A)  is not likely to be related to productivity differences.
B)  is a barrier to obtaining an education.
C)  does not affect the supply of workers in the different labor markets.
D)  encourages workers to bear the cost of acquiring education.E) B) and D)
F) C) and D)

Question 3

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

Question 4

A union's major source of power is its

Accepted Answer

A)  high-profile leadership.
B)  ability to increase productivity.
C)  ability to threaten a strike.
D)  ability to deny employers the opportunity to bargain over wages.E) None of the above
F) A) and B)

Question 5

Empirical evidence suggests that ability, effort, and chance are not likely to be significant contributors to wage differences.

Accepted Answer

A) True 
 B)False

Question 6

Economists are skeptical that discrimination is employer driven because

Accepted Answer

A)  discrimination cannot exist in markets.
B)  employers are not really interested in maximizing profit.
C)  employers typically base wages paid on the prevailing market wage.
D)  holding productivity constant, a profit-maximizing employer will hire the cheapest labor available.E) A) and B)
F) None of the above

Question 7

Figure 19-5 
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, which of the following could be considered an efficiency wage?

Accepted Answer

A)  $4
B)  $5
C)  $6
D)  $7E) None of the above
F) All of the above

Question 8

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Accepted Answer

It can be relatively difficult...

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing. Which of the following would push the wages of plumbers who work on sewer lines higher?

Accepted Answer

A)  Plumbers who work on new residential housing require more training than plumbers working on sewer lines.
B)  Plumbing jobs that involve sewer lines are likely to have a high element of personal satisfaction.
C)  Plumbers who work with sewer lines are more likely to work the day shift.
D)  plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.E) B) and C)
F) All of the above

Question 11

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 $25. Suppose now that the AFL-CIO (a labor organization)  organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. Because of the union,

Accepted Answer

A)  80 people who were once employed are now unemployed.
B)  40 people who were once employed are now unemployed.
C)  80 people who were once unemployed are now employed.
D)  40 people who were once unemployed are now employed.E) B) and C)
F) All of the above

Question 12

The most important type of human capital is

Accepted Answer

The answer of The most important type of human capital...

Question 13

A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Describe other factors that may be important in explaining wages differences for clerical staff.

Accepted Answer

Other factors may include job ...

Question 14

If employers are profit-maximizers, then

Accepted Answer

A)  competition will always eventually eliminate employment discrimination.
B)  employment discrimination may persist if consumers discriminate.
C)  employment discrimination will persist because it is always profitable.
D)  compensating differentials cannot exist.E) B) and C)
F) A) and D)

Question 15

Labor-market discrimination is evident when

Accepted Answer

A)  wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity.
B)  wage rates differ for similar jobs.
C)  consumers prefer to shop at some stores, and not at others.
D)  wages reflect workers' human capital.E) All of the above
F) None of the above

Question 16

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 B)

Question 17

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Accepted Answer

A)  because the salaries paid to professional athletes exhibit the superstar phenomenon, which is highly correlated with discrimination
B)  because all four United States professional sports leagues (football, basketball, hockey, and baseball)  require discrimination studies every five years
C)  because nonwhites comprise a majority of starters for many professional sports teams
D)  because the wide availability of performance statistics allows economists to control for individual player productivity in ways that are difficult to do for other types of firmsE) C) and D)
F) All of the above

Question 18

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

Accepted Answer

A)  the theory of compensating differentials
B)  the efficient-market hypothesis
C)  human-capital theory
D)  signaling theoryE) A) and B)
F) None of the above

Question 19

Which of the following statements is not correct?

Accepted Answer

A)  Competitive markets tend to limit the impact of discrimination on wages.
B)  Differences in earnings of whites and blacks or men and women provide clear evidence of discrimination.
C)  Some differences in earnings are attributable to discrimination based on race, sex, or other factors.
D)  Profit-maximizing behavior can reduce discriminatory wage differentials.E) A) and B)
F) A) and C)

Question 20

Which of the following examples best describes the signaling theory of education?

Accepted Answer

A)  The hiring manager offers a job to a recent college graduate because she is more beautiful than the rest of the applicants.
B)  The hiring manager offers a job to a recent college graduate because she is expected to be more productive than other applicants due to her educational attainment.
C)  The hiring manager offers a job to a recent college graduate because the hiring manager has a bias toward people with college degrees.
D)  The hiring manager offers a job to a recent college graduate because education is correlated with natural ability.E) A) and B)
F) A) and C)

Exam 19: Earnings and Discrimination

Economists are skeptical that discrimination is employer driven because

Correct Answer
verified

Empirical evidence suggests that ability, effort, and chance are not likely to be significant contributors to wage differences.

Correct Answer
verified

Which of the following examples best describes the signaling theory of education?

Correct Answer
verified

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Correct Answer
verified

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
verified

If employers are profit-maximizers, then

Correct Answer
verified

The wage difference between jobs that require education and those that don't

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
Other factors may include job ...
View Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing. Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, which of the following could be considered an efficiency wage?

Correct Answer
verified

The most important type of human capital is

Correct Answer
verified

Labor-market discrimination is evident when

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Correct Answer
verified
It can be relatively difficult...
View Answer

A union's major source of power is its

Correct Answer
verified

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.

Correct Answer
verified

Exam 19: Earnings and Discrimination

Economists are skeptical that discrimination is employer driven because

Correct AnswerverifiedShow Answer

Empirical evidence suggests that ability, effort, and chance are not likely to be significant contributors to wage differences.

Correct AnswerverifiedShow Answer

Which of the following examples best describes the signaling theory of education?

Correct AnswerverifiedShow Answer

Why do economists study sports teams when looking for evidence of labor-market discrimination?

Correct AnswerverifiedShow Answer

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

If employers are profit-maximizers, then

Correct AnswerverifiedShow Answer

The wage difference between jobs that require education and those that don't

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 AnswerverifiedOther factors may include job ...View AnswerShow Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing. Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Figure 19-5 -Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S2, which of the following could be considered an efficiency wage?

Correct AnswerverifiedShow Answer

The most important type of human capital is

Correct AnswerverifiedShow Answer

Labor-market discrimination is evident when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Correct AnswerverifiedIt can be relatively difficult...View AnswerShow Answer

A union's major source of power is its

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answer
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Other factors may include job ...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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It can be relatively difficult...
View Answer

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Correct Answer
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