Question 1

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg.After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers,they found that

Accepted Answer

A)   black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston.
B)   black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago.
C)   job applicants with white names received 50 percent more phone calls from interested employers.
D)   job applicants with white names received 7 percent more phone calls from interested employers.E) A) and C)
F) None of the above

Question 2

Nick and Daryn are both market analysts who graduated from the same university with bachelors' degrees in economics and achieved similar performance reviews.Daryn has one year more experience in his current position than does Nick.If Daryn earns a higher annual salary than Nick because he has an additional year of tenure,the employer is

Accepted Answer

A)   paying a compensating differential.
B)   rewarding increases in human capital.
C)   practicing discrimination.
D)   paying efficiency wages.E) B) and C)
F) A) and C)

Question 3

Which of the following statements accurately explains the superstar phenomenon in wages?

Accepted Answer

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.E) All of the above
F) A) and B)

Question 4

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

Accepted Answer

A) True 
 B)False

Question 5

Human capital is

Accepted Answer

A)   a stock of equipment and structures.
B)   the result of investments workers make in themselves such as education.
C)   a difference in wages that arises to offset the nonmonetary characteristics of different jobs.
D)   a characteristic that affects a worker's self-esteem but not her wages.E) All of the above
F) A) and B)

Question 6

Cory has just graduated from veterinary school.He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher.The higher salary to work with larger animals is an example of

Accepted Answer

A)   a compensating differential.
B)   signaling theory.
C)   an efficiency wage.
D)   efficient union bargaining.E) B) and D)
F) All of the above

Question 7

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Accepted Answer

A)   streetcar firms.
B)   government officials.
C)   Sherman antitrust laws.
D)   consumers.E) All of the above
F) A) and D)

Question 8

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Accepted Answer

A)   Plumbers who work on new residential housing require more training than plumbers working on sewer lines.
B)   Plumbing jobs that involve sewer lines are likely to have a high element of personal satisfaction.
C)   Plumbers who work with sewer lines are more likely to work the day shift.
D)   plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.E) A) and C)
F) B) and C)

Question 9

Which of the following would not be considered human capital?

Accepted Answer

A)   the golf clubs a professional golfer uses to play golf
B)   the golf balls a professional golfer uses to play golf
C)   the device a golfer uses to accurately measure distances on a golf course
D)   none of the above would be considered human capitalE) A) and C)
F) A) and B)

Question 10

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 C)
F) None of the above

Question 11

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Accepted Answer

A)   racial discrimination by firms, despite government efforts to halt it.
B)   racial discrimination by firms with no government action either to halt it or to support it.
C)   government-mandated racial discrimination.
D)   a failure to find any discrimination where most would expect to find it.E) B) and D)
F) B) and C)

Question 12

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Accepted Answer

A)   in favor of the segregation laws because they lowered costs and increased profits.
B)   against the segregation laws because they increased costs and lowered profits.
C)   lobbied local governments to enact such laws because their customers were willing to pay more for service in order to maintain the segregation.
D)   concerned about the effects of smoking. Since blacks smoked more than whites, they were supportive of the segregation laws.E) None of the above
F) B) and C)

Question 13

Men and women tend to choose different types of occupations,and so

Accepted Answer

A)   a source of wage differences between men and women is differences in human capital.
B)   a source of wage differences between men and women is compensating differentials.
C)   the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate.
D)   we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past.E) None of the above
F) All of the above

Question 14

Suppose that a company hires recent college graduates for two types of jobs,sales people and credit analysts.The hours worked and skill levels are the same for both positions.The sales people get to travel to several desirable locations,whereas the credit analysts do not leave the home office.When comparing the salaries of the two positions,it is likely that the company pays the

Accepted Answer

A)   sales people less as a compensating differential.
B)   credit analysts less as a compensating differential.
C)   same salary for both positions because they require the same skill level.
D)   same salary for both positions because it would be illegal to do otherwise.E) A) and B)
F) B) and C)

Question 15

Evidence of differences in average wages of black workers compared to white workers

Accepted Answer

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.E) A) and B)
F) A) and C)

Question 16

Discrimination by a manager in the hiring process

Accepted Answer

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.E) A) and B)
F) C) and D)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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)   Beth's wage is higher than Bill's because Beth is very personable, and Bill is very gruff.
C)   Karl's wage is higher than Kay's because Karl's job may cause long-term health problems, and Kay's job will not impair her health.
D)   All of the above are good illustrations of compensating differentials.E) None of the above
F) B) and D)

Question 19

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,Tom would be most likely to agree with which of the following quotes?

Accepted Answer

A)   "We encourage our employees to enroll in night classes to improve their on-the-job productivity."
B)   "We encourage our employees to participate in online seminars to learn new skills."
C)   "We pay higher wages to employees who have MBAs because, on average, their job performance is better than similar employees who do not have MBAs."
D)   "When we interview prospective employees at job fairs, we are looking for college graduates because they have the determination and follow-through to finish what they start."E) None of the above
F) A) and B)

Question 20

Evaluate the following statement: "The gender pay gap provides evidence of widespread,severe,ongoing discrimination by employers and fellow workers."

Accepted Answer

There are many explanations of the gende...

Exam 19: Earnings and Discrimination.

Evidence of differences in average wages of black workers compared to white workers

Correct Answer
verified

Which of the following statements accurately explains the superstar phenomenon in wages?

Correct Answer
verified

Evaluate the following statement: "The gender pay gap provides evidence of widespread,severe,ongoing discrimination by employers and fellow workers."

Correct Answer
verified
There are many explanations of the gende...
View Answer

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

Correct Answer
verified

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct Answer
verified

Discrimination by a manager in the hiring process

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

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

Correct Answer
verified

Cory has just graduated from veterinary school.He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher.The higher salary to work with larger animals is an example of

Correct Answer
verified

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,Tom would be most likely to agree with which of the following quotes?

Correct Answer
verified

Which of the following comparisons best illustrates a compensating differential?

Correct Answer
verified

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Correct Answer
verified

Which of the following would not be considered human capital?

Correct Answer
verified

Correct Answer
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Human capital is

Correct Answer
verified

Correct Answer
verified

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg.After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers,they found that

Correct Answer
verified

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Correct Answer
verified

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Correct Answer
verified

Men and women tend to choose different types of occupations,and so

Correct Answer
verified

Exam 19: Earnings and Discrimination.

Evidence of differences in average wages of black workers compared to white workers

Correct AnswerverifiedShow Answer

Which of the following statements accurately explains the superstar phenomenon in wages?

Correct AnswerverifiedShow Answer

Evaluate the following statement: "The gender pay gap provides evidence of widespread,severe,ongoing discrimination by employers and fellow workers."

Correct AnswerverifiedThere are many explanations of the gende...View AnswerShow Answer

All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.

Correct AnswerverifiedShow Answer

A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing.Which of the following would push the wages of plumbers who work on sewer lines higher?

Correct AnswerverifiedShow Answer

Discrimination by a manager in the hiring process

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

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

Correct AnswerverifiedShow Answer

Cory has just graduated from veterinary school.He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher.The higher salary to work with larger animals is an example of

Correct AnswerverifiedShow Answer

Tom,the manager and owner of a small company,believes in the signaling theory of education,not the human capital theory.As such,Tom would be most likely to agree with which of the following quotes?

Correct AnswerverifiedShow Answer

Which of the following comparisons best illustrates a compensating differential?

Correct AnswerverifiedShow Answer

In the early twentieth century,racial segregation of streetcars in the southern cities was largely opposed by

Correct AnswerverifiedShow Answer

Which of the following would not be considered human capital?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg.After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers,they found that

Correct AnswerverifiedShow Answer

The example of segregated streetcars in the southern United States in the early twentieth century is one example of

Correct AnswerverifiedShow Answer

In the early 20th century,streetcars in many southern cities required that white passengers sit in the front of the car while black passengers sat in the back.The firms that ran the streetcars were

Correct AnswerverifiedShow Answer

Men and women tend to choose different types of occupations,and so

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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There are many explanations of the gende...
View Answer

Correct Answer
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