Question 1

Scenario 19-6​
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, while unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.
-Refer to Scenario 19-6. If consumers do not discriminate between biased and unbiased tutoring centers, then

Accepted Answer

A)  price of tutoring must increase in the short run to account for higher cost to biased tutoring centers.
B)  competition in the after-school tutoring industry will ensure the difference in wages will persist in the long run.
C)  biased tutoring centers will be more profitable than unbiased tutoring centers in the short run.
D)  unbiased tutoring centers will be more profitable than biased tutoring centers in the short run.E) B) and C)
F) A) and C)

Question 2

If men, on average, earn 20 percent more than women in a particular occupation,

Accepted Answer

A)  this is clear evidence of discrimination.
B)  some of this differential could be due to differences in educational levels.
C)  some of this differential could be due to differences in human capital.
D)  Both b and c are correct.E) B) and C)
F) A) and D)

Question 3

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

Question 4

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Accepted Answer

A)  most people's preference is to work the day shift.
B)  some people prefer to work a night shift for nonmonetary reasons.
C)  night shift jobs are generally more technically difficult.
D)  more women than men work the night shift.E) A) and B)
F) A) and D)

Question 5

Assuming that all other things are equal, including the wage, which of the following statements is correct?

Accepted Answer

A)  The quantity of labor supplied for difficult jobs exceeds that for easy jobs.
B)  The quantity of labor supplied for fun jobs exceeds that for dull jobs.
C)  The quantity of labor supplied for dangerous jobs exceeds that for safe jobs.
D)  All of the above are correct.E) A) and C)
F) A) and D)

Question 6

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 7

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Accepted Answer

A) True 
 B)False

Question 8

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Accepted Answer

A) True 
 B)False

Question 9

The characteristics of jobs and workers affect

Accepted Answer

A)  labor supply.
B)  labor demand.
C)  equilibrium wages.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 10

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

Question 11

According to the human-capital view, education

Accepted Answer

A)  has no effect on lifetime earnings.
B)  alters work ethic.
C)  enhances productivity.
D)  is an indicator of natural ability.E) A) and C)
F) B) and C)

Question 12

Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay

Accepted Answer

A)  higher wages than Job B because the labor supplied for Job B will be greater.
B)  lower wages than Job B because the labor supplied for Job B will be greater.
C)  higher wages than Job B because the labor supplied for Job A will be greater.
D)  lower wages than Job B because the labor supplied for Job A will be greater.E) C) and D)
F) All of the above

Question 13

Figure 19-1 
-Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?

Accepted Answer

A)  An efficiency wage.
B)  Discrimination.
C)  A compensating differential.
D)  The superstar phenomenon.E) A) and C)
F) A) and B)

Question 14

Difference in wages can be explained by differences in

Accepted Answer

A)  job characteristics and worker characteristics.
B)  job characteristics but not worker characteristics.
C)  worker characteristics but not job characteristics.
D)  neither worker characteristics or job characteristics.E) A) and D)
F) B) and C)

Question 15

Which of the following explains the "beauty premium" differences in wages?

Accepted Answer

A)  People who spend time on their personal appearance may send a signal that they are more productive workers.
B)  Personal appearance and intelligence are inversely related.
C)  The "superstar phenomenon" explains the "beauty premium."
D)  Better-looking people are more efficient; thus, they are paid an efficiency wage.E) B) and C)
F) A) and D)

Question 16

Suppose that Philip is the best contractor in town, and he makes $400,000 a year. Suppose that Julia Roberts is the best and highest paid actress in Hollywood, and she makes $13 million per movie. Both are the best in their respective fields of work. One reason for the significant difference in incomes has to do with the nature of the service each offers. Philip's contracting services

Accepted Answer

A)  can be provided to an unlimited number of customers in a year, but Julia's work is sold to only a few individuals in a year.
B)  can only be provided to a limited number of customers in a year, but Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
C)  can be provided to a unlimited number of customers in a year, and Julia's work is sold to millions of individuals in a year - i.e., to anyone who has the willingness and ability to pay for admission to her movies.
D)  can only be provided to a limited number of customers in a year, and Julia's work is sold to only a few individuals in a year.E) A) and B)
F) A) and C)

Question 17

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 K-12 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) None of the above
F) A) and B)

Question 18

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 (i) 
Years of work experience.(ii) 
Educational attainments.
(iii) 
Occupations.
(iv) 
Child care responsibilities.

Accepted Answer

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

Question 19

Which of the following comparisons best illustrates a compensating differential?

Accepted Answer

A)  John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's.
B)  Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff.
C)  Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health.
D)  All of the above are good illustrations of compensating differentials.E) A) and C)
F) All of the above

Question 20

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Accepted Answer

The answer of Many economists believe that competitive, market economies...

Exam 19: Earnings and Discrimination

The characteristics of jobs and workers affect

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

Correct Answer
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Assuming that all other things are equal, including the wage, which of the following statements is correct?

Correct Answer
verified

Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay

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

Which of the following explains the "beauty premium" differences in wages?

Correct Answer
verified

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Correct Answer
verified

Difference in wages can be explained by differences in

Correct Answer
verified

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity.

Correct Answer
verified

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

Correct Answer
verified

Figure 19-1 -Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?

Correct Answer
verified

Which of the following comparisons best illustrates a compensating differential?

Correct Answer
verified

If men, on average, earn 20 percent more than women in a particular occupation,

Correct Answer
verified

Correct Answer
verified

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Correct Answer
verified

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Correct Answer
verified

Correct Answer
verified

According to the human-capital view, education

Correct Answer
verified

Exam 19: Earnings and Discrimination

The characteristics of jobs and workers affect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assuming that all other things are equal, including the wage, which of the following statements is correct?

Correct AnswerverifiedShow Answer

Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay

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

Which of the following explains the "beauty premium" differences in wages?

Correct AnswerverifiedShow Answer

The statement that "night shift workers make a higher wage than day shift workers" is likely to reflect the fact that

Correct AnswerverifiedShow Answer

Difference in wages can be explained by differences in

Correct AnswerverifiedShow Answer

A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job 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

Figure 19-1 -Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?

Correct AnswerverifiedShow Answer

Which of the following comparisons best illustrates a compensating differential?

Correct AnswerverifiedShow Answer

If men, on average, earn 20 percent more than women in a particular occupation,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Many economists believe that competitive, market economies provide a natural antidote to employer discrimination known as the

Correct AnswerverifiedShow Answer

Economists would argue that the gender wage gap is narrowing because of efficiency wages.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the human-capital view, education

Correct AnswerverifiedShow Answer

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