Question 1

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) All of the above
F) B) and C)

Question 2

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Accepted Answer

A) True 
 B)False

Question 3

In the United States,the earnings gap between workers with college degrees and workers with high school degrees

Accepted Answer

A)   has never been documented by reliable evidence.
B)   is evident,but it has remained roughly constant over the past several years.
C)   is evident,but it has diminished over the last several years.
D)   is evident,and it has widened over the last several years.E) B) and C)
F) All of the above

Question 4

Expenditures on human capital

Accepted Answer

A)   reflect an expectation of some future return on the investment.
B)   are generally embodied in a specific individual.
C)   reflect an investment of resources today to raise productivity in the future.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 5

Economists who study labor markets have documented

Accepted Answer

A)   a general decline in the wages of college graduates over the last decade.
B)   an increasing trend in U.S.labor markets for employers to pay all costs of education and training.
C)   a decrease in the earnings gap between low-skill and high-skill workers over the past two decades.
D)   an increase in the earnings gap between low-skill and high-skill workers over the past two decades.E) All of the above
F) A) and B)

Question 6

Which of the following statements is correct?

Accepted Answer

A)   Compensating wage differentials reflect different skills of workers.
B)   Discrimination by employers affects the marginal productivity of workers.
C)   The signaling theory of education suggests that schooling does not affect worker productivity.
D)   The superstar phenomenon explains why more talented entertainers earn more than less talented entertainers.E) C) and D)
F) All of the above

Question 7

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) B) and D)

Question 8

If,as some economists believe,changes in technology over recent decades have brought about changes in labor markets,then those changes likely have resulted in

Accepted Answer

A)   reduced emphasis on compensating differentials as an explanation for wage differences.
B)   a reduced emphasis on human-capital differences among workers as an explanation for wage differences.
C)   a narrowing of the earnings gap between high-skilled workers and low-skilled workers.
D)   a widening of the earnings gap between high-skilled workers and low-skilled workers.E) B) and D)
F) A) and B)

Question 9

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) All of the above
F) A) and C)

Question 10

Evidence suggests that business owners are generally

Accepted Answer

A)   interested in profits only when discrimination is illegal.
B)   more interested in discrimination than in making a profit.
C)   unable to determine the link between discrimination and profitability.
D)   more interested in making a profit than in discriminating against a particular group.E) B) and C)
F) None of the above

Question 11

The "beauty premium" can be explained by the fact that

Accepted Answer

A)   marginal productivity in all occupations has a physical dimension.
B)   in some occupations,physical attractiveness of workers may enhance the value of their marginal product.
C)   beauty acts as an implicit signal of innate intelligence.
D)   beautiful people are likely to reflect "good breeding."E) None of the above
F) A) and C)

Question 12

Which of the following statements does not accurately describe the market for labor?

Accepted Answer

A)   The characteristics of workers,such as their education and experience,the characteristics of jobs,such as their pleasantness or unpleasantness,and the presence or absence of discrimination by employers all determine equilibrium wages.
B)   Labor unions,minimum wage laws,and efficiency wages all may increase wages above their equilibrium level.
C)   Firms are willing to pay more for better-educated workers as long as there is an excess supply of this type of worker.
D)   Discrimination by employers against a group of workers may artificially lower wages for that group.E) A) and B)
F) A) and C)

Question 13

Labor-market discrimination based solely on age is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 14

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Accepted Answer

A)   some of the wage gap is explained by efficiency wages.
B)   differences in years of work experience likely lead to productivity differences between men and women.
C)   compensating differentials usually lead to higher wages for women.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 15

The accumulation of investments in people,such as education and on-the-job training,is known as

Accepted Answer

A)   physical capital.
B)   human capital.
C)   efficiency wage.
D)   a union.E) A) and D)
F) A) and C)

Question 16

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) C) and D)
F) All of the above

Question 17

A recent law school graduate is considering two offers to practice law,one in California and one in Alabama.The California bar exam is very difficult to pass compared with Alabama's exam.Assuming all other things equal,the attorney would expect

Accepted Answer

A)   to be unable to predict the wage difference between Alabama and California.
B)   to make a higher wage in California.
C)   to make a higher wage in Alabama.
D)   wages in California and Alabama to be identical.E) B) and D)
F) B) and C)

Question 18

A 1986 study of segregation on early 20th century U.S.streetcars found that the primary source of racial segregation on streetcars was

Accepted Answer

A)   a longstanding tradition of racial segregation.
B)   policies implemented by the owners of streetcars.
C)   laws passed by the government.
D)   threats by white people to boycott the streetcars if they were forced to sit with black people.E) All of the above
F) B) and D)

Question 19

The case study of segregated street cars in southern cities illustrates which of the following?

Accepted Answer

A)   Racial discrimination in the seating areas was an important catalyst in the Civil Rights movement.
B)   Segregation laws were supported by local business owners as well as patrons.
C)   Firms usually care more about maximizing profits than discriminating against certain customers.
D)   Racial discrimination was a precursor to gender discrimination.E) B) and D)
F) A) and C)

Question 20

If an employer's behavior is supportive of the theory of efficiency wages,the employer would

Accepted Answer

A)   raise wages in an effort to increase worker effort.
B)   raise wages in an effort to increase worker turnover.
C)   decrease wages in an effort to increase worker effort.
D)   decrease wages in an effort to increase worker turnover.E) None of the above
F) B) and C)

Exam 19: Earnings and Discrimination

Which of the following statements does not accurately describe the market for labor?

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

Labor-market discrimination based solely on age is illegal in the United States.

Correct AnswerverifiedShow Answer

If an employer's behavior is supportive of the theory of efficiency wages,the employer would

Correct AnswerverifiedShow Answer

A 1986 study of segregation on early 20th century U.S.streetcars found that the primary source of racial segregation on streetcars was

Correct AnswerverifiedShow Answer

In the United States,the earnings gap between workers with college degrees and workers with high school degrees

Correct AnswerverifiedShow Answer

The economic theory of labor markets suggests that wages are determined by labor supply and labor demand.

Correct AnswerverifiedShow Answer

Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because

Correct AnswerverifiedShow Answer

The case study of segregated street cars in southern cities illustrates which of the following?

Correct AnswerverifiedShow Answer

Evidence suggests that business owners are generally

Correct AnswerverifiedShow Answer

If,as some economists believe,changes in technology over recent decades have brought about changes in labor markets,then those changes likely have resulted in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

The "beauty premium" can be explained by the fact that

Correct AnswerverifiedShow Answer

Economists who study labor markets have documented

Correct AnswerverifiedShow Answer

The characteristics of jobs and workers affect

Correct AnswerverifiedShow Answer

A recent law school graduate is considering two offers to practice law,one in California and one in Alabama.The California bar exam is very difficult to pass compared with Alabama's exam.Assuming all other things equal,the attorney would expect

Correct AnswerverifiedShow Answer

Expenditures on human capital

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The accumulation of investments in people,such as education and on-the-job training,is known as

Correct AnswerverifiedShow Answer

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