Question 1

Which of the following is an economic explanation for the "beauty premium"?

Accepted Answer

A)   Employers pay very attractive women less than average-looking women because they believe them to be less intelligent.
B)   Employers pay above-average-looking men more than above-average-looking women.
C)   Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women.
D)   Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.E) A) and D)
F) A) and B)

Question 2

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Accepted Answer

A)   the theory of efficiency wages
B)   the marginal-productivity theory
C)   human-capital theory
D)   signaling theoryE) None of the above
F) All of the above

Question 3

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

Accepted Answer

A)   Streetcar owners opposed segregation laws primarily because they were concerned with civil rights.
B)   Segregation laws were supported by both local business owners and patrons.
C)   Firms usually care more about maximizing profits than discriminating against certain customers.
D)   Laws passed by the government cannot reduce discrimination.E) B) and C)
F) A) and D)

Question 4

Evidence of differences in average wages of women compared to men

Accepted Answer

A)   clearly illustrates differences in productivity between genders.
B)   provides conclusive evidence of discrimination on the basis of gender.
C)   is seldom used to provide evidence of discriminatory bias.
D)   does not provide conclusive evidence of discrimination.E) None of the above
F) B) and D)

Question 5

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Accepted Answer

Job experience, education, lif...

Question 6

Effective minimum-wage laws will most likely

Accepted Answer

A)   increase demand for labor.
B)   create a surplus of labor.
C)   increase incomes for all unskilled workers.
D)   decrease incomes for all unskilled workers.E) None of the above
F) C) and D)

Question 7

The organized withdrawal of labor from a firm by a union is called

Accepted Answer

A)   a strike.
B)   a bargain.
C)   a monopoly.
D)   a tournament.E) C) and D)
F) A) and B)

Question 8

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Accepted Answer

A)   men were better at adding than women.
B)   women chose the tournament payoff scheme more than men.
C)   men thought they won the four-player tournament part of the experiment more often than women thought they won the four-player tournament.
D)   the researchers demonstrated that women face significant wage discrimination in stock brokerages.E) A) and B)
F) C) and D)

Question 9

Discrimination is an emotionally charged issue that is impossible to study objectively.

Accepted Answer

A) True 
 B)False

Question 10

According to the human-capital view, education

Accepted Answer

A)   has no effect on lifetime earnings.
B)   alters work ethic.
C)   enhances productivity.
D)   is an indicator of natural ability.E) B) and D)
F) A) and B)

Question 11

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 12

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Accepted Answer

A)   Courtney is beautiful and Nicole is not.
B)   Courtney is 40 years old and Nicole is 60 years old.
C)   Courtney works the night shift and Nicole works the day shift.
D)   Courtney attended on the job-training seminars which allows her to do tasks Nicole is not qualified for.E) B) and D)
F) B) and C)

Question 13

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Accepted Answer

It can be relatively difficult...

Question 14

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

Accepted Answer

A)   Good looks are an innate ability for some jobs, which results in higher productivity and higher wages.
B)   Good looks may be an indirect measure of other types of ability such as attention to detail.
C)   If better-looking people earn more than average-looking people, employers may be discriminating based on personal appearance.
D)   All of the above could explain the beauty premium.E) All of the above
F) C) and D)

Question 15

The market wage could be higher than the equilibrium wage if a worker

Accepted Answer

A)   is a superstar.
B)   belongs to a labor union.
C)   has more human capital.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 16

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Accepted Answer

A) True 
 B)False

Question 17

A natural correction to employer discrimination in market economies is the

Accepted Answer

A)   threat of judicial review.
B)   profit motive.
C)   political process.
D)   union movement.E) A) and D)
F) B) and C)

Question 18

Park rangers at Yellowstone National Park are known to have low wages. This is probably because

Accepted Answer

A)   park rangers are required to be college graduates.
B)   park rangers don't need much money to live.
C)   park ranger jobs are perceived to be dangerous.
D)   park ranger jobs are perceived to be "fun."E) B) and C)
F) A) and D)

Question 19

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Accepted Answer

A)   discriminatory rules established by the government
B)   compensating wage differentials for living in Europe
C)   discriminatory preferences on the part of US sports fans for other sports
D)   efficiency wages paid to European players to enhance on-field performanceE) A) and B)
F) A) and C)

Question 20

Marcia is a white 23-year-old female, and Joan is a black 23-year-old female. Both Marcia and Joan were economics majors, and they graduated from the same college in the same year with the same GPA. Marcia and Joan both got identical jobs at a brokerage firm after graduating from college. They both work equally hard. Marcia earns $38,000 a year, and Joan earns $30,000 a year. Select the best explanation for this wage difference.

Accepted Answer

A)   Marcia has less human capital than Joan.
B)   Marcia receives a compensating wage differential that Joan does not.
C)   Joan has been discriminated against because she is black.
D)   Marcia has been discriminated against because she is white.E) A) and B)
F) A) and C)

Exam 19: Earnings and Discrimination

Effective minimum-wage laws will most likely

Correct Answer
verified

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct Answer
verified

Evidence of differences in average wages of women compared to men

Correct Answer
verified

The organized withdrawal of labor from a firm by a union is called

Correct Answer
verified

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Correct Answer
verified

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

Correct Answer
verified

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Correct Answer
verified
It can be relatively difficult...
View Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Correct Answer
verified
Job experience, education, lif...
View Answer

Which of the following is an economic explanation for the "beauty premium"?

Correct Answer
verified

According to the human-capital view, education

Correct Answer
verified

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Correct Answer
verified

Correct Answer
verified

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

Correct Answer
verified

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct Answer
verified

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct Answer
verified

Park rangers at Yellowstone National Park are known to have low wages. This is probably because

Correct Answer
verified

The market wage could be higher than the equilibrium wage if a worker

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

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Correct Answer
verified

A natural correction to employer discrimination in market economies is the

Correct Answer
verified

Exam 19: Earnings and Discrimination

Effective minimum-wage laws will most likely

Correct AnswerverifiedShow Answer

Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?

Correct AnswerverifiedShow Answer

Evidence of differences in average wages of women compared to men

Correct AnswerverifiedShow Answer

The organized withdrawal of labor from a firm by a union is called

Correct AnswerverifiedShow Answer

The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?

Correct AnswerverifiedIt can be relatively difficult...View AnswerShow Answer

List the productivity factors that may explain the differences in pay between men and women in similar occupations. Do any of these factors arise as a result of cultural or social traditions? If so, describe how changes in social relationships will affect the pay gap over time.

Correct AnswerverifiedJob experience, education, lif...View AnswerShow Answer

Which of the following is an economic explanation for the "beauty premium"?

Correct AnswerverifiedShow Answer

According to the human-capital view, education

Correct AnswerverifiedShow Answer

Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

Correct AnswerverifiedShow Answer

In the experiment conducted by economists Muriel Niederle and Lise Vesterlund

Correct AnswerverifiedShow Answer

Discrimination is an emotionally charged issue that is impossible to study objectively.

Correct AnswerverifiedShow Answer

Park rangers at Yellowstone National Park are known to have low wages. This is probably because

Correct AnswerverifiedShow Answer

The market wage could be higher than the equilibrium wage if a worker

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

Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

Correct AnswerverifiedShow Answer

A natural correction to employer discrimination in market economies is the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
It can be relatively difficult...
View Answer

Correct Answer
verified
Job experience, education, lif...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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