A) Wage differences persist because the political system has failed to enact laws to equalize wages among all groups.
B) Wage differences exist because of past discrimination on the part of political bodies such as city councils and school boards.
C) Wage differences exist because of the differences in the political views of the different groups.
D) Wage differences exist because the political system is biased against paying compensating differentials.
F) B) and C)
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A) a human capital differential.
B) a compensating differential.
C) signaling theory.
D) the superstar phenomenon.
F) A) and D)
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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.
F) C) and D)
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A) an ability for almost everyone to enjoy movies at a relatively low cost.
B) the above-average intellect of the average movie star.
C) a compensating differential.
D) a lack of technological advances in the movie industry.
F) A) and B)
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Women will...View Answer
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A) John has more human capital than Ken.
B) John has less human capital than Ken.
C) John has been discriminated against because he is young.
D) Ken has been discriminated against because he is old.
F) A) and B)
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A) decreases the firm's costs.
B) increases the firm's costs.
C) is evident if a white manager refuses to hire a Hispanic worker.
D) is evident if a 30-year-old manager refuses to hire a 50-year-old worker.
F) B) and C)
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B) False
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A) firms' customers have discriminatory preferences.
B) the wage differential is explained by a compensating differential.
C) the wage differential is explained by differences in human capital.
D) All of the above are correct.
F) None of the above
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A) compensating-differential view of education.
B) natural-ability view of education.
C) unmeasured-variables view of education.
D) human-capital view of education.
F) B) and C)
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A) Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work.
B) Funnier comedians earn more than less funny comedians because they are more talented.
C) Talented athletes earn more than equally talented plumbers because technology allows the delivery of the services provided by the athletes to all interested customers.
D) Athletes get paid for performing services that everyday people perform as hobbies.
F) A) and C)
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A) does not alone provide conclusive evidence of discrimination.
B) clearly indicates differences in productivity between races.
C) is seldom used to provide evidence of discriminatory bias.
D) clearly indicates discrimination on the basis of race.
F) A) and B)
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A) workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
B) additional years of formal schooling do not increase a worker's productivity.
C) workers with more years of formal schooling are less likely to be affected by ability,effort,and chance.
D) men are more likely to earn more than women because men are more likely to have graduated from college.
F) A) and C)
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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."
F) A) and C)
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A) is a signal of high marginal productivity.
B) is correlated with natural ability.
C) increases the productivity of low-ability workers.
D) Both a and b are correct.
F) C) and D)
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B) False
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B) False
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B) False
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A) rare.
B) common and that owners of teams are largely to blame.
C) common and that customers (fans) are largely to blame.
D) None of the above is correct;there are no reliable studies of discrimination in sports due to the difficulties inherent in measuring athletes' productivity.
F) A) and D)
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A) consumer discrimination.
B) discrimination in sports.
C) the beauty premium.
D) None of the above is correct.
F) B) and C)
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