Question 1

Which of the following is not an interpretation of the "beauty premium"?

Accepted Answer

A)   Beautiful workers are not willing to work for lower wages.
B)   Good looks are a type of innate ability causing the worker to be more valuable to the firm.
C)   The beauty premium is a type of discrimination.
D)   Beauty is an indirect measure of other types of ability.E) A) and D)
F) B) and D)

Question 2

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

Accepted Answer

A) True 
 B)False

Question 3

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

Accepted Answer

A)   most countries but not in the United States.
B)   the United States but not in most other countries.
C)   the United States and in most other countries.
D)   None of the above is correct; the evidence fails to indicate that human capital is a significant factor in determining earnings anywhere in the world.E) All of the above
F) A) and D)

Question 4

A consensus view among economists regarding the possibility of labor-market discrimination is that

Accepted Answer

A)   most wage differences among groups are attributable to discrimination.
B)   many employers use compensating differentials to hide discriminatory practices.
C)   wage differences among groups are not sufficient by themselves to determine how much discrimination there is.
D)   all wage differences among groups are attributable to differences in human capital and compensating differentials.E) All of the above
F) A) and D)

Question 5

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Accepted Answer

A)   signaling theory
B)   human-capital theory
C)   physical-capital theory
D)   the efficient-market hypothesisE) None of the above
F) A) and D)

Question 6

The signaling theory of education is most similar to the

Accepted Answer

A)   human capital theory of education.
B)   discrimination theory of advertising.
C)   signaling theory of advertising.
D)   efficiency wage theory of labor economics.E) B) and C)
F) A) and C)

Question 7

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 B)
F) None of the above

Question 8

Tiffany is a black 21-year-old female, and Danielle is a black 41-year-old female. Both Tiffany and Danielle were accounting majors, and they graduated from the same college with the same GPA - Tiffany in 2013 and Danielle in 1992. Tiffany and Danielle are both auditors at the same accounting firm. Tiffany earns $63,000 a year, and Danielle earns $95,000 a year. Select the best explanation for this wage difference.

Accepted Answer

A)   Tiffany has more human capital than Danielle.
B)   Tiffany has less human capital than Danielle.
C)   Tiffany has been discriminated against because she is young.
D)   Danielle has been discriminated against because she is old.E) A) and D)
F) None of the above

Question 9

The accumulation of investments in people is called

Accepted Answer

The answer of The accumulation of investments in people is...

Question 10

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Accepted Answer

A) True 
 B)False

Question 11

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) , they are providing evidence in support of the

Accepted Answer

A)   human-capital theory of education.
B)   signaling theory of education.
C)   principle that education reduces marginal productivity.
D)   principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.E) A) and C)
F) None of the above

Question 12

Which of the following is not an example of capital used in production?

Accepted Answer

A)   a teacher's chalkboard
B)   a manufacturer's factory
C)   a landscaper's time
D)   an accountant's educationE) None of the above
F) A) and B)

Question 13

Over the past 30 years, the number of jobs in the United States requiring skilled labor has been declining as foreign countries steal these jobs away from the U.S. As a result, the domestic demand for skilled labor has been falling and the wage gap between skilled and unskilled labor has been narrowing.

Accepted Answer

A) True 
 B)False

Question 14

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) All of the above

Question 15

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Accepted Answer

A)   signaling
B)   human-capital view
C)   superstar phenomenon
D)   benefits of beautyE) A) and B)
F) B) and D)

Question 16

The difference in wages that results from nonmonetary characteristics of different jobs is called the

Accepted Answer

compensati...

Question 17

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Accepted Answer

A) True 
 B)False

Question 18

Discrimination may persist even in competitive markets when the source of the discrimination is

Accepted Answer

A)   employer prejudice.
B)   customer prejudice.
C)   wage prejudice.
D)   employee prejudice.E) All of the above
F) A) and D)

Question 19

Figure 19-6 
-Refer to Figure 19-6. Given demand, D1, and supply, S1, 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 20

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 experience.
B)   is willing to travel two weeks out of each month, whereas worker B will not travel more than three nights a month.
C)   has a special certification that directly relates to her job, whereas worker B does not.
D)   is a young blonde woman, whereas worker B is an older, gray-haired man.E) A) and C)
F) All of the above

Exam 19: Earnings and Discrimination

The accumulation of investments in people is called

Correct Answer
verified

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct Answer
verified

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) , they are providing evidence in support of the

Correct Answer
verified

Correct Answer
verified

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct Answer
verified

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Correct Answer
verified

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

Difference in wages can be explained by differences in

Correct Answer
verified

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

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

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Correct Answer
verified

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

Correct Answer
verified

Discrimination may persist even in competitive markets when the source of the discrimination is

Correct Answer
verified

Which of the following is not an interpretation of the "beauty premium"?

Correct Answer
verified

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Correct Answer
verified

Correct Answer
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Which of the following is not an example of capital used in production?

Correct Answer
verified

The signaling theory of education is most similar to the

Correct Answer
verified

The difference in wages that results from nonmonetary characteristics of different jobs is called the

Correct Answer
verified
compensati...
View Answer

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct Answer
verified

Exam 19: Earnings and Discrimination

The accumulation of investments in people is called

Correct AnswerverifiedShow Answer

The human-capital theory of education maintains that workers who complete specific levels of education enhance their productivity through education.

Correct AnswerverifiedShow Answer

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major) , they are providing evidence in support of the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some economists suggest that increased international trade with countries that have a greater proportion of unskilled workers has led to an expanding wage gap between high-skill and low-skill workers in the United States.

Correct AnswerverifiedShow Answer

Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?

Correct AnswerverifiedShow Answer

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

Difference in wages can be explained by differences in

Correct AnswerverifiedShow Answer

Workers with more human capital on average earn substantially higher pay than workers with less human capital in

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

Maria has just graduated from Princeton University and has applied for a job at a major bank. The bank decides to offer Maria a job because they perceive her degree from Princeton to be an indication of her high-ability. To which of the following views of education does the bank subscribe?

Correct AnswerverifiedShow Answer

The superstar phenomenon explains why professional athletes earn more than amateur athletes.

Correct AnswerverifiedShow Answer

Discrimination may persist even in competitive markets when the source of the discrimination is

Correct AnswerverifiedShow Answer

Which of the following is not an interpretation of the "beauty premium"?

Correct AnswerverifiedShow Answer

Figure 19-6 -Refer to Figure 19-6. Given demand, D1, and supply, S1, how many workers are unemployed if a minimum wage of $8 per hour is imposed on this market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not an example of capital used in production?

Correct AnswerverifiedShow Answer

The signaling theory of education is most similar to the

Correct AnswerverifiedShow Answer

The difference in wages that results from nonmonetary characteristics of different jobs is called the

Correct Answerverifiedcompensati...View AnswerShow Answer

A consensus view among economists regarding the possibility of labor-market discrimination is that

Correct AnswerverifiedShow Answer

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compensati...
View Answer

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