Question 1

Efficiency wages may decrease employee turnover.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Accepted Answer

A)  Firms rely more on computer databases than on paper filing systems so there is an increased demand for high-skilled computer programmers.
B)  Consumers can accomplish many simple banking tasks on an automated teller machine (ATM)  rather than speaking to a bank teller so there is a decreased demand for low- skilled bank tellers.
C)  Transponders in peoples' vehicles can be used to automatically deduct tolls from debit accounts, reducing the need for low-skilled toll collectors.
D)  Improvements in technology have made tax preparation software easy for an average citizen to use, reducing the need for high-skilled accountants.E) None of the above
F) A) and D)

Question 3

According to proponents of the signaling theory of education,

Accepted Answer

A)  schooling has no real productivity benefit.
B)  no one person finds it easier to earn a college degree than does any other person.
C)  the human-capital view of education is entirely correct.
D)  employers send signals to young people to persuade them to expend whatever effort is necessary to earn college degrees.E) A) and C)
F) C) and D)

Question 4

Sometimes workers earn higher wages through chance.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements represents the idea behind signaling in education?

Accepted Answer

A)  Education can turn an unproductive person into a productive person.
B)  Education increases the marginal productivity of naturally productive workers.
C)  More productive people are more inclined to educate themselves.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 6

Table 19-1  Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Accepted Answer

A)  an increase in the demand for skilled labor relative to the demand for unskilled labor.
B)  an increase in international trade.
C)  improvements in technology.
D)  All of the above are correct.E) B) and C)
F) All of the above

Question 7

George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.

Accepted Answer

A)  Because the male worker earns a higher salary than the female worker, the employer must be discriminating against women.
B)  If George has better performance reviews than Susan, the company might be rewarding George for his high productivity.
C)  If forepersons at bottling plants typically earn more than employees in the advertising department, then the brewery must be discriminating against women.
D)  George might be earning more because he works the day shift while Susan works the night shift.E) None of the above
F) All of the above

Question 8

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Accepted Answer

A)  natural ability.
B)  geographic location of employment.
C)  chance.
D)  work effort.E) A) and B)
F) A) and D)

Question 9

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Accepted Answer

The U.S. tends to import goods produced ...

Question 10

Figure 19-6​ 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. If a labor union forms within the widget industry and subsequently negotiates an hourly wage of $20.00, how many hours of labor will be demanded by the widget industry?

Accepted Answer

A)  20 labor hours.
B)  30 labor hours.
C)  60 labor hours.
D)  80 labor hours.E) A) and C)
F) All of the above

Question 11

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Accepted Answer

A)  rise, and the wages of skilled labor will fall.
B)  fall, and the wages of skilled labor will rise.
C)  rise, and the wages of skilled labor will rise.
D)  fall, and the wages of skilled labor will fall.E) B) and D)
F) None of the above

Question 12

Which of the following is not an example of capital used in production?

Accepted Answer

A)  a teacher's chalkboard
B)  a manufacturer's factory
C)  a landscaper's time
D)  an accountant's educationE) B) and C)
F) C) and D)

Question 13

Which of the following statements is true of wages, educational attainment, and gender?

Accepted Answer

A)  Male workers are compensated for attending college, while female workers generally are not.
B)  Female workers are compensated for attending college, while male workers generally are not.
C)  Both genders receive a higher wage for attending college.
D)  Neither gender receives a higher wage for attending college.E) B) and C)
F) None of the above

Question 14

In the signaling theory of education,

Accepted Answer

A)  schooling itself does not lead to more productive workers.
B)  chance plays more of a role than in the human-capital theory.
C)  schooling enhances worker productivity.
D)  compensating differentials do not matter.E) All of the above
F) B) and C)

Question 15

Other things equal, a particular job will likely pay a higher wage if it involves

Accepted Answer

A)  danger to the worker.
B)  personal enjoyment for the worker.
C)  intellectual stimulation for the worker.
D)  All of the above are correct.E) A) and D)
F) C) and D)

Question 16

Why do college graduates earn more in wages than workers with only a high school diploma?

Accepted Answer

They have ...

Question 17

The return to investment in human capital is observed

Accepted Answer

A)  only when workers are assigned identical tasks.
B)  in the wage differential between workers.
C)  in the high school dropout rate in inner-city urban school districts.
D)  in the low wages of educated factory workers.E) B) and C)
F) A) and C)

Question 18

Scenario 19-3
In the small town of Hamilton, Montana, there is a local hardware store called Eddy's Hardware. There are only two types of workers who apply for jobs at Eddy's Hardware: cowboys and farm boys. Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against farm boys. Eddy's Hardware denies the complaint and says the store is only trying to maximize profit.
-Refer to Scenario 19-3. Which of the following statements would strengthen the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)  Cowboys call in sick to work more often than farm boys.
B)  Farm boys are more likely than cowboys to work the day shift rather than the night shift.
C)  Cowboys' experience using hardware generally exceeds farm boys' experience using it.
D)  On average farm boys have less experience working at the hardware store than cowboys.E) B) and D)
F) A) and B)

Question 19

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 20

Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?

Accepted Answer

A)  "The only place where success comes before work is in the dictionary."
B)  "Work hard. Play harder."
C)  "Pay a man for the job you want him to do."
D)  "Imagination is more important than knowledge."E) None of the above
F) B) and C)

Exam 19: Earnings and Discrimination

Which of the following statements is true of wages, educational attainment, and gender?

Correct Answer
verified

George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.

Correct Answer
verified

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Correct Answer
verified

According to proponents of the signaling theory of education,

Correct Answer
verified

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Correct Answer
verified

The return to investment in human capital is observed

Correct Answer
verified

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Correct Answer
verified

Why do college graduates earn more in wages than workers with only a high school diploma?

Correct Answer
verified
They have ...
View Answer

In the signaling theory of education,

Correct Answer
verified

Which of the following is not an example of capital used in production?

Correct Answer
verified

Which of the following statements represents the idea behind signaling in education?

Correct Answer
verified

Sometimes workers earn higher wages through chance.

Correct Answer
verified

Efficiency wages may decrease employee turnover.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Other things equal, a particular job will likely pay a higher wage if it involves

Correct Answer
verified

Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?

Correct Answer
verified

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Correct Answer
verified

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

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Correct Answer
verified
The U.S. tends to import goods produced ...
View Answer

Exam 19: Earnings and Discrimination

Which of the following statements is true of wages, educational attainment, and gender?

Correct AnswerverifiedShow Answer

George and Susan work at the same brewery. George works in advertising. Susan works as a forewoman in the bottling plant. George is paid more than Susan.

Correct AnswerverifiedShow Answer

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will

Correct AnswerverifiedShow Answer

According to proponents of the signaling theory of education,

Correct AnswerverifiedShow Answer

Workers whose skills become obsolete as a result of technological change are often paid a lower wage as a result of

Correct AnswerverifiedShow Answer

The return to investment in human capital is observed

Correct AnswerverifiedShow Answer

Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?

Correct AnswerverifiedShow Answer

Why do college graduates earn more in wages than workers with only a high school diploma?

Correct AnswerverifiedThey have ...View AnswerShow Answer

In the signaling theory of education,

Correct AnswerverifiedShow Answer

Which of the following is not an example of capital used in production?

Correct AnswerverifiedShow Answer

Which of the following statements represents the idea behind signaling in education?

Correct AnswerverifiedShow Answer

Sometimes workers earn higher wages through chance.

Correct AnswerverifiedShow Answer

Efficiency wages may decrease employee turnover.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Other things equal, a particular job will likely pay a higher wage if it involves

Correct AnswerverifiedShow Answer

Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?

Correct AnswerverifiedShow Answer

Table 19-1 Source: US Census Bureau and Mankiw's calculations -Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

Correct AnswerverifiedShow 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

Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.

Correct AnswerverifiedThe U.S. tends to import goods produced ...View AnswerShow Answer

Correct Answer
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They have ...
View Answer

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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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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Correct Answer
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The U.S. tends to import goods produced ...
View Answer