Question | Answer |
Other things equal, when the supply of workers is low, on would predict that market wages would be | relatively high. |
Empirical evidence suggests that ability,effort, and chance are not likely to be significant contributors to wage differences. True or False? | FALSE |
If firms are competitive, then labor-market discrimination | likely will not be a long-run problem unless customers exhibit discriminatory preference or government maintains discriminatory policies. |
A manager of a small firm who believes in the signaling theory of education would encourage her employees to obtain additional education to raise their on-the-job productivity. True or false? | FALSE |
Profit-maximizing,competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination. True or false? | TRUE |
Which of the following is correct? | Differences in human capital may explain differences in wages between blacks and whites. |
Bill and Phil are identical twins who attended grammar school through college together. Bill took a job as an engineer who does not have to travel out of the state. Phil took a job as an engineer who must travel out of state once a week. | Phil receives a higher wage to compensage for the disagreeable nature of business travel. |
Bill and Hillary work for the same bakery. Bill is an expert chef who starts at 4am. Hillary is a bookkeeper who works 9-5. Bill earns twice as much as Hillary. Which is correct? | If starting to work at 4am is an unattractive characteristic of a baker job, the employer is likely to be paying a compensation differential. |
Offering different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics is called | discrimination. |
Daryn earns a higher salary than Nick because Daryn is willing to work on the loading dock but Nick prefers the air-conditioned office. This difference in salary could illustrate a compensating differential. True or False? | TRUE |
Jobs that involve pleasant work, as opposed to jobs that involve unpleasant work, usually pay | lower wages, because workers typically are not attracted to jobs that involve unpleasant work unless there is a monetary inducement. |
According to the signaling theory of education, | schooling sends signals to employers in much the same way that advertising sends signals to customers. |
The fact that movie star Julia Roberts' salary is much higher than the salary earned by the world's best plumber can best be explained by the | superstar phenomenon. |
Park rangers at Yellowstone National Park are knows to have low wages. This is probably because | park ranger jobs are perceived to be "fun." |
Which of the following is perceived to be customer discrimination? | White NBA fans prefer to attend games where the teams have more white players in the starting lineups. |
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. True or False? | TRUE |
Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination. True or False? | TRUE |
Which of the following is an example of labor-market discrimination assuming that worker A and B have identical characteristics except for the ones listed. A firm offers a higher salary to worker A than worker B because worker A | is a young blonde woman, whereas worker B is an older, grey-haired man. |
Efficiency wages may decrease employee turnover. True or false? | TRUE |
In determinig wages, ability, effort, and chance | play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure. |
When employers sort employment applications into high-ability and low-ability people based on whether or not the application has a college degree (irrespective of major), they are providing evidence in support of | signaling theory of education. |
Traci and Ken both work at the locat factory producing tractors. Trace earns $20/hr working days, and Ken earns $22/hr working nights. Traci and Ken do the same job, have the same experience, and have the same level of education. This means that the | higher-paying job has a compensating wage differential of $2/hr. |
Which of the following can be used to help explain wage differences among different groups of workers? | human capital acquired through education, human capital acquired through job experience, and compensating differentials. |
Discrimination is usually not a profit-maximizing strategy. True or false? | TRUE |