Question 1

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S2, how much more do the workers with jobs earn per hour if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

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

Question 2

Artie and Angelina attended the same university, graduated with the same degree and grade point average, and are equally productive in their identical new jobs. Still, Angelina's salary is 10% lower than Artie's salary. One can conclude that Angelina likely suffers from

Accepted Answer

The answer of Artie and Angelina attended the same university,...

Question 3

Which of the following is not an example of efficiency wages?

Accepted Answer

A)  More productive workers are paid more to reflect their higher output.
B)  Higher wages induce higher output from workers.
C)  Better quality applicants apply for jobs that pay above-equilibrium wages.
D)  Workers are less likely to leave jobs that pay above-equilibrium wages.E) A) and D)
F) B) and C)

Question 4

Scenario 19-1
Ferris B., a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for lifeguards to patrol the beach at an exclusive island resort in the Caribbean. Recruiter B is looking for workers to staff positions at a summer youth camp.
-Refer to Scenario 19-1. Ferris is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Ferris concludes that

Accepted Answer

A)  wages are unlikely to be affected by job requirements.
B)  since the lifeguard job would expose him to a threat of skin cancer, the wage will be low.
C)  if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise.
D)  if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise.E) None of the above
F) B) and C)

Question 5

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Accepted Answer

A)  Firms rely more on computer databases than on paper filing systems so there is an increased demand for high-skilled computer programmers.
B)  Consumers can accomplish many simple banking tasks on an automated teller machine (ATM)  rather than speaking to a bank teller so there is a decreased demand for low- skilled bank tellers.
C)  Transponders in peoples' vehicles can be used to automatically deduct tolls from debit accounts, reducing the need for low-skilled toll collectors.
D)  Improvements in technology have made tax preparation software easy for an average citizen to use, reducing the need for high-skilled accountants.E) B) and D)
F) A) and B)

Question 7

Daryn and Nick work for two different companies, but each performs the same job working on a loading dock. Daryn, however, earns a higher salary than his friend Nick The difference in salary could illustrate union wages if Daryn's annual salary is covered by a collective bargaining agreement and Nick's is not.

Accepted Answer

A) True 
 B)False

Question 8

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Accepted Answer

A)  are valued more by the market relative to Susan's and that explains why her income is higher than Susan's.
B)  are valued less by the market relative to Susan's and that explains why her income is higher than Susan's.
C)  are valued less by the market relative to Susan's and that explains why her income is lower than Susan's.
D)  are more expensive because she receives a compensating differential.E) A) and B)
F) A) and C)

Question 9

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Accepted Answer

Men and women may, on average, select di...

Question 10

The market wage could be higher than the equilibrium wage if a worker

Accepted Answer

A)  is a superstar.
B)  belongs to a labor union.
C)  has more human capital.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 11

When comparing the salaries of a superstar CPA and a superstar golfer,

Accepted Answer

A)  both can earn tremendously high salaries because both can meet with millions of clients.
B)  the superstar CPA will not earn as much as the superstar golfer because superstar accountants do not have access to the same sophisticated technologies that superstar golfers do.
C)  the superstar CPA will not earn as much as the superstar golfer because a superstar accountant can only work with a limited number of clients per day, whereas millions of fans can enjoy the services provided by a superstar golfer on a given day by watching a televised tournament.
D)  the superstar CPA will not earn as much as the superstar golfer because customers are unable to distinguish superstar accountant from a mediocre accountant.E) B) and D)
F) None of the above

Question 12

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

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

Question 13

Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald)  and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. If some consumers in the market for haircuts have a strong preference for having their hair cut by a barber who is not going bald, then

Accepted Answer

A)  the difference in wages will eventually disappear since a haircut is a homogeneous good.
B)  barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair.
C)  barbershops that hire barbers with hair will always be much more profitable.
D)  barbershops that hire bald barbers will always be much more profitable.E) A) and B)
F) C) and D)

Question 14

In determining wages, ability, effort, and chance

Accepted Answer

A)  probably play no role whatsoever.
B)  play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure.
C)  play a role, and that role is fully captured in easy-to-measure factors such as human capital and age.
D)  play a role, and it is fully explained within the context of compensating differentials.E) A) and B)
F) A) and C)

Question 15

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of minimum-wage laws?

Accepted Answer

A)  They affect skilled workers' wages.
B)  They create above-equilibrium wages for some unskilled workers.
C)  They create a shortage of unskilled labor.
D)  They negatively affect the employment of skilled workers.E) B) and D)
F) All of the above

Question 17

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

Accepted Answer

A)  Firms that ran the streetcars were more interested in segregating customers by race than profits.
B)  The firms that ran the streetcars were unanimous in their support of laws that required segregation of races.
C)  Before the passage of laws that mandated segregation of races on streetcars, segregation of smokers and nonsmokers was more common than segregation of races.
D)  Segregation based on gender was more common than race at first.E) C) and D)
F) All of the above

Question 18

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S2, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Accepted Answer

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

Question 19

The competition experiment conducted by economists Muriel Niederle and Lise Vesterlund was consistent with the results of Terry Odean which were that

Accepted Answer

A)  men were better at math than women.
B)  men chose competition more because they were better at sports than women.
C)  men trade stocks excessively while women adopt a buy-and-hold strategy.
D)  streetcar companies were not in favor of segregation because it hurt their profits.E) A) and D)
F) B) and D)

Question 20

Which of the following theories explains why increased education translates into higher wages?

Accepted Answer

A)  human-capital theory
B)  the theory of compensating differentials
C)  the theory of supply and demand
D)  comparative advantageE) B) and C)
F) A) and C)

Exam 19: Earnings and Discrimination

Which of the following is true of minimum-wage laws?

Correct Answer
verified

The competition experiment conducted by economists Muriel Niederle and Lise Vesterlund was consistent with the results of Terry Odean which were that

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how much more do the workers with jobs earn per hour if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Correct Answer
verified

Artie and Angelina attended the same university, graduated with the same degree and grade point average, and are equally productive in their identical new jobs. Still, Angelina's salary is 10% lower than Artie's salary. One can conclude that Angelina likely suffers from

Correct Answer
verified

Correct Answer
verified

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

Correct Answer
verified

In determining wages, ability, effort, and chance

Correct Answer
verified

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Correct Answer
verified
Men and women may, on average, select di...
View Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Correct Answer
verified

The market wage could be higher than the equilibrium wage if a worker

Correct Answer
verified

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

Correct Answer
verified

When comparing the salaries of a superstar CPA and a superstar golfer,

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following is not an example of efficiency wages?

Correct Answer
verified

Which of the following theories explains why increased education translates into higher wages?

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Correct Answer
verified

Exam 19: Earnings and Discrimination

Which of the following is true of minimum-wage laws?

Correct AnswerverifiedShow Answer

The competition experiment conducted by economists Muriel Niederle and Lise Vesterlund was consistent with the results of Terry Odean which were that

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how much more do the workers with jobs earn per hour if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon

Correct AnswerverifiedShow Answer

Artie and Angelina attended the same university, graduated with the same degree and grade point average, and are equally productive in their identical new jobs. Still, Angelina's salary is 10% lower than Artie's salary. One can conclude that Angelina likely suffers from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A study of segregated streetcars in the southern United States in the early twentieth century found which of the following?

Correct AnswerverifiedShow Answer

In determining wages, ability, effort, and chance

Correct AnswerverifiedShow Answer

Explain how compensating differentials could contribute to differences between the average wages of men and women.

Correct AnswerverifiedMen and women may, on average, select di...View AnswerShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, what is the quantity of labor demanded if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

Correct AnswerverifiedShow Answer

The market wage could be higher than the equilibrium wage if a worker

Correct AnswerverifiedShow Answer

If an older worker earns less than a younger worker for the same job, we have proof of age discrimination.

Correct AnswerverifiedShow Answer

When comparing the salaries of a superstar CPA and a superstar golfer,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not an example of efficiency wages?

Correct AnswerverifiedShow Answer

Which of the following theories explains why increased education translates into higher wages?

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S2, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

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
Men and women may, on average, select di...
View 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