Question 1

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Accepted Answer

A)   effort and natural ability.
B)   natural ability and years of experience.
C)   years of experience and job characteristics.
D)   race and job characteristics.E) B) and C)
F) A) and C)

Question 2

Scenario 19-6
Suppose that in the competitive market for auto repair, firms prefer to hire men rather than women. Assume that the women applying for positions have the same skills, experience, and work ethic as the men. As a result of this discrimination, the demand for women is lower than it otherwise would be.
-Refer to Scenario 19-6. Suppose that consumers prefer to have men work on their auto repairs and are willing to pay higher prices to accommodate these preferences. What will happen to the wage differential between men and women?

Accepted Answer

The answer of Scenario 19-6
Suppose that in the competitive market...

Question 3

Which of the following moves the wage above its equilibrium value?

Accepted Answer

A)   both compensating differentials and efficiency wages
B)   compensating differentials but not efficiency wages
C)   efficiency wages but not compensating differentials
D)   neither compensating differentials nor efficiency wagesE) A) and C)
F) B) and D)

Question 4

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar

Accepted Answer

A)   (i)  and (ii)  only
B)   (iii)  and (iv)  only
C)   (ii)  only
D)   (i) , (ii) , (iii) , and (iv) E) A) and B)
F) All of the above

Question 7

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Accepted Answer

A) True 
 B)False

Question 8

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, how much more do workers earn per hour if the supply curve shifts to S2?

Accepted Answer

The answer of Figure 19-6 
-Refer to Figure 19-6. Given...

Question 9

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Accepted Answer

A)   Although both have BA's in Journalism, Al's K­12 and college education were of a lower quality than Steve's.
B)   Al has greater experience.
C)   Al works the night shift and Steve works the day shift.
D)   Al writes editorials which are very popular with customers, while Steve covers the police report which fewer subscribers read.E) B) and C)
F) C) and D)

Question 10

Sometimes wages are set above the equilibrium level when firms pay

Accepted Answer

A)   workers with more seniority higher wages than newly-hired workers.
B)   efficiency wages to reduce turnover.
C)   compensating differentials to workers who work the night shift.
D)   more attractive salespeople higher wages than less attractive salespeople.E) B) and D)
F) C) and D)

Question 11

Table 19-1  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Accepted Answer

A)   an increase in the demand for skilled labor relative to the demand for unskilled labor.
B)   an increase in international trade.
C)   improvements in technology.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 12

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

Question 13

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

Accepted Answer

A)   social responsibility.
B)   the profit motive.
C)   fear of reprisal from groups that suffer from those wage differences.
D)   fear of reprisal from government in the form of prosecution.E) None of the above
F) All of the above

Question 14

Which of the following would both make a worker's wage higher than otherwise?

Accepted Answer

A)   the work is safe, the employer pays an efficiency wage
B)   the work is safe, the employer does not pay an efficiency wage
C)   the work is dangerous, the employer pays an efficiency wage
D)   the work is dangerous, the employer does not pay and efficiency wageE) A) and D)
F) B) and C)

Question 15

Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called

Accepted Answer

A)   a compensating differential.
B)   an efficiency wage.
C)   discrimination.
D)   compensating variation.E) B) and D)
F) B) and C)

Question 16

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. In a competitive market for grocery store employees, why might Jason's wage differential persist?

Accepted Answer

A)   Jason works harder than the other employees.
B)   Jason may choose to do tasks other workers find undesirable.
C)   Jason's amiable personality allows him to work well with his co­workers.
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 17

Which of the following represents an example of labor-market discrimination?

Accepted Answer

A)   An employer is more likely to grant an interview to a person graduating from Yale than from the local community college.
B)   An employer is more likely to grant an interview to a person graduating from the local community college than from Yale.
C)   An employer is more likely to grant an interview to a woman with a traditionally "white" name such as Emily than to a woman with a traditionally "black" name such as Lakisha.
D)   An employer is as likely to grant an interview to person with a traditionally "masculine" name such as "Alex" as a person with a traditionally "feminine" name such as "Emily."E) C) and D)
F) A) and B)

Question 18

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Accepted Answer

5 to 10 pe...

Question 19

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Accepted Answer

A)   will increase only if the company can increase the price of its product.
B)   is likely to increase.
C)   is likely to decrease.
D)   will not change.E) B) and C)
F) None of the above

Question 20

Figure 19-7 
-Refer to Figure 19-7. The figure shows labor demand and labor supply in a non-unionized labor market. Suppose the current labor demand is D1 and the current labor supply is S1. If a firm in this market decided to pay its workers $18 per hour to increase the productivity of its workers, this firm would be paying a(n)

Accepted Answer

The answer of Figure 19-7 
-Refer to Figure 19-7. The...

Exam 19: Earnings and Discrimination

Correct Answer
verified

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

Correct Answer
verified

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Correct Answer
verified

Correct Answer
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Which of the following moves the wage above its equilibrium value?

Correct Answer
verified

Correct Answer
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Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called

Correct Answer
verified

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Correct Answer
verified

Which of the following would both make a worker's wage higher than otherwise?

Correct Answer
verified

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Correct Answer
verified

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

Correct Answer
verified

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct Answer
verified

Labor-market discrimination is evident when

Correct Answer
verified

Which of the following represents an example of labor-market discrimination?

Correct Answer
verified

White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar

Correct Answer
verified

Sometimes wages are set above the equilibrium level when firms pay

Correct Answer
verified

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answer
verified
5 to 10 pe...
View Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Correct Answer
verified

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how much more do workers earn per hour if the supply curve shifts to S2?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Correct AnswerverifiedShow Answer

Some economists are skeptical of the argument that employers are responsible for discriminatory wage differences. They argue that market economies provide a natural remedy to employer discrimination, and that remedy is

Correct AnswerverifiedShow Answer

As a result of an increase in the earnings gap between skilled and unskilled jobs, the incentive to get a college education has been declining.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following moves the wage above its equilibrium value?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called

Correct AnswerverifiedShow Answer

When robots are used to replace workers on a factory production line, the wage gap between skilled and unskilled workers

Correct AnswerverifiedShow Answer

Which of the following would both make a worker's wage higher than otherwise?

Correct AnswerverifiedShow Answer

Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.

Correct AnswerverifiedShow Answer

Labor-market discrimination is evident when

Correct AnswerverifiedShow Answer

Which of the following represents an example of labor-market discrimination?

Correct AnswerverifiedShow Answer

White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar

Correct AnswerverifiedShow Answer

Sometimes wages are set above the equilibrium level when firms pay

Correct AnswerverifiedShow Answer

According to a study of the "beauty premium," how do the wages of people with average looks compare to those of people considered less attractive than average?

Correct Answerverified5 to 10 pe...View AnswerShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Correct AnswerverifiedShow Answer

Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how much more do workers earn per hour if the supply curve shifts to S2?

Correct AnswerverifiedShow Answer

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5 to 10 pe...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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