Question 1

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

Accepted Answer

A)  architects' services are not as highly valued by society as are the services of athletes and actors.
B)  only physically attractive people can become superstars, and it would be a coincidence if a highly talented architect were also physically attractive.
C)  government regulations place restrictions on the incomes of architects, but there are no such restrictions on the incomes of athletes or actors.
D)  it is impossible, currently, for an architect to supply his or her services at low cost to every customer.E) A) and B)
F) All of the above

Question 2

Other things the same, we'd expect that a job with less pleasant working conditions pays

Accepted Answer

A)  more; this is known as an efficiency wage.
B)  more; this is known as a compensating differential.
C)  less; this is known as an efficiency wage.
D)  less; this is known as a compensating differential.E) A) and B)
F) All of the above

Question 3

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Accepted Answer

A)  Restaurant customers preferred to be waited on by white waitresses rather than black waitresses.
B)  Black basketball players earned more than white basketball players.
C)  Employers were more likely to request interviews with job applicants with "white" names such as Greg than from applicants with "black" names such as Jamal.
D)  Employers were more likely to request interviews with job applicants with "masculine" names such as Mark than from applicants with "feminine" names such as Lisa.E) A) and D)
F) C) and D)

Question 4

First grade teachers who work in Lynn, Massachusetts's (a large, low income city north of Boston)  public schools earn more than first grade teachers who work in private schools in more affluent communities north of Boston. Lynn teachers belong to a teachers' union. Which statement best explains the scenario described above?

Accepted Answer

A)  Lynn school teachers receive a compensating differential because they work in a more difficult environment, and they receive higher than market equilibrium wages because they are members of a teachers' union.
B)  Lynn school teachers receive a compensating differential because they work in a more difficult environment, but they do not receive higher than market equilibrium wages because they are members of a teachers' union.
C)  Lynn school teachers do not receive a compensating differential because they work in a more difficult environment, but they do receive higher than market equilibrium wages because they are members of a teachers' union.
D)  Lynn school teachers do not receive a compensating differential because they work in a more difficult environment, and they do not receive higher than market equilibrium wages because they are members of a teachers' union.E) A) and B)
F) A) and C)

Question 5

Scenario 19-7
Mark works full time at a large accounting firm. Mark has been at the firm for four years but has not been given a promotion, even though newer employees have already been promoted. Mark believes he is a victim of labor-market discrimination, and threatens to hire a lawyer to sue the company.
​
-Refer to Scenario 19-7. Which of the following would weaken Mark's case against his employer?

Accepted Answer

A)  Mark is more productive than other newly-hired accountants who were promoted before he was.
B)  Mark works more than any other accountant in the firm.
C)  Newly hired employees who were promoted before Mark had extensive previous accounting experience.
D)  Newly hired employees who were promoted before Mark are more well-liked by other accountants in the firm.E) B) and C)
F) All of the above

Question 6

Which theory states that education makes workers more productive?

Accepted Answer

human-capi...

Question 7

It is likely that efficiency wages will decrease employee effort.

Accepted Answer

A) True 
 B)False

Question 8

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Accepted Answer

A)  increased.
B)  decreased.
C)  remained constant.
D)  first increased by a small percent, then decreased by a large percent.E) C) and D)
F) A) and B)

Question 9

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Accepted Answer

A)  non-pecuniary differentials
B)  compensating differentials
C)  fundamental differences
D)  idiosyncratic differencesE) A) and C)
F) A) and D)

Question 10

The accumulation of investments in people is called

Accepted Answer

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

Question 11

Technology is an important factor in explaining the high incomes of some athletes primarily because

Accepted Answer

A)  technology accounts for differences in incomes within all occupations.
B)  technology makes it possible for very large numbers of people to watch athletes perform.
C)  technology improves the performance of athletes.
D)  technology requires human capital to use it efficiently.E) B) and D)
F) None of the above

Question 12

Why do major-league baseball players get paid more than minor-league players?

Accepted Answer

A)  Major-league players are better athletes.
B)  The higher wage reflects a compensating differential.
C)  Playing in the major leagues in more pleasant then playing in the minor leagues.
D)  The higher wage is often due to educational discrepancies.E) B) and C)
F) A) and D)

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

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Accepted Answer

A)  compensating differentials.
B)  the increased recognition that a larger stock of human capital usually leads to higher earnings.
C)  technological progress.
D)  the decreasing importance of international trade.E) A) and C)
F) C) and D)

Question 15

Business owners who care only about making money are

Accepted Answer

A)  likely to discriminate against certain groups of workers.
B)  likely to be replaced by discriminating businesses.
C)  more concerned about racial discrimination than gender discrimination.
D)  at an advantage when competing against those who practice discrimination.E) B) and D)
F) A) and B)

Question 16

Dr. Benson is regarded as, by far, the best dentist in his part of the country, yet his income is not significantly higher than the average income for a dentist in his area. In contrast, Bo Johnson, the best baseball player in that region, earns five times the average salary of all baseball players. The most likely explanation is that

Accepted Answer

A)  the widespread perception that Dr. Benson is a great dentist is, in fact, incorrect.
B)  the baseball players' union is more powerful than the professional association of dentists.
C)  Bo Johnson, unlike Dr. Benson, can provide his services to millions of people simultaneously.
D)  chance plays a role in determining people's incomes, resulting in earnings discrepancies that are hard to explain or justify.E) All of the above
F) C) and D)

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

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Accepted Answer

A)  Every customer in the market wants to enjoy the good supplied by the best producer.
B)  Technology makes it possible for the best producer to supply every customer at low cost.
C)  Customers are willing to pay more for entertainment than other services.
D)  Both a and b are correct.E) B) and D)
F) A) and D)

Question 19

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 20

Evidence of differences in the 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)

Exam 19: Earnings and Discrimination

Business owners who care only about making money are

Correct Answer
verified

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

Correct Answer
verified

The accumulation of investments in people is called

Correct Answer
verified

Correct Answer
verified

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Correct Answer
verified

Correct Answer
verified

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct Answer
verified

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Correct Answer
verified

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct Answer
verified

Technology is an important factor in explaining the high incomes of some athletes primarily because

Correct Answer
verified

Which theory states that education makes workers more productive?

Correct Answer
verified
human-capi...
View 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 Answer
verified

Why do major-league baseball players get paid more than minor-league players?

Correct Answer
verified

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct Answer
verified

It is likely that efficiency wages will decrease employee effort.

Correct Answer
verified

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

Other things the same, we'd expect that a job with less pleasant working conditions pays

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Earnings and Discrimination

Business owners who care only about making money are

Correct AnswerverifiedShow Answer

The primary economic explanation as to why a world-renowned architect cannot attain the "superstar" status that an athlete or actor can attain is that

Correct AnswerverifiedShow Answer

The accumulation of investments in people is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

Correct AnswerverifiedShow Answer

Over the past several years, the earnings gap between high-skilled and low-skilled workers has

Correct AnswerverifiedShow Answer

Which term do economists use to refer to a difference in wages that arises from nonmonetary characteristics of different jobs?

Correct AnswerverifiedShow Answer

Technology is an important factor in explaining the high incomes of some athletes primarily because

Correct AnswerverifiedShow Answer

Which theory states that education makes workers more productive?

Correct Answerverifiedhuman-capi...View AnswerShow 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

Why do major-league baseball players get paid more than minor-league players?

Correct AnswerverifiedShow Answer

A study conducted by economists Marianne Bertrand and Sendhil Mullainathan found evidence of labor-market discrimination based on which of the following findings?

Correct AnswerverifiedShow Answer

It is likely that efficiency wages will decrease employee effort.

Correct AnswerverifiedShow Answer

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

Other things the same, we'd expect that a job with less pleasant working conditions pays

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

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

Correct Answer
verified

Correct Answer
verified
human-capi...
View Answer

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