Question 1

When the supply of workers is plentiful, one would predict that market wages would be:

Accepted Answer

A)   determined outside the domain of the neoclassical theory
B)   low, other things being equal
C)   high, other things being equal
D)   determined solely by factors that affect demandE) C) and D)
F) A) and B)

Question 2

Empirical analysis of wage differences have found evidence:

Accepted Answer

A)   that suggests that physical appearance-related wage differentials among males are vastly different to such differentials among females
B)   of direct correlation between wages and attractiveness
C)   of a minor role played by omitted variables
D)   that the physical appearance of people in identical jobs is not likely to impact their wagesE) None of the above
F) A) and D)

Question 3

Given that there are statistical differences in human capital across both age groups and gender, then this is likely to:

Accepted Answer

A)   explain all of the differences in average wage rates across age classifications
B)   explain some of the differences in average wage rates across gender classifications
C)   be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high-school certificate
D)   explain none of the differences in average wage rates across gender classificationsE) C) and D)
F) B) and C)

Question 4

Professional underwater divers are known to have high wages and work an average of only 20 hours a week. The high wages are partly explained by the fact that the job:

Accepted Answer

A)   does not require a university degree
B)   is likely to be very dangerous
C)   is likely to be very dull
D)   is likely to be funE) B) and D)
F) A) and C)

Question 5

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers.

Accepted Answer

A) True 
 B)False

Question 6

One of the problems in calculating the true amount of discrimination that takes place in the market for labour is:

Accepted Answer

A)   the difficulty in measuring productivity differences between workers
B)   the inability to calculate wage differentials
C)   the inability to see changes in the wage differentials over a period of time
D)   inadequate reporting of discriminationE) A) and D)
F) B) and C)

Question 7

Even when the labour market was efficient, wage differentials could still occur.

Accepted Answer

A) True 
 B)False

Question 8

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for skilled occupations relative to unskilled occupations.

Accepted Answer

A) True 
 B)False

Question 9

Ferris B, a university student, is trying to consider what he should do for summer employment. Two recruiters show up at his university in search of summer workers. Recruiter A is looking for workers to help a disaster relief agency distribute food aid in Africa. Recruiter B is looking for custodial help to clean motel rooms in a motel located near the entrance to a famous National Park.
-On the basis of knowledge obtained in his economics class, Ferris is likely to conclude that:

Accepted Answer

A)   if the motel job also requires an ability to do general plumbing repairs, the wage offer will be low
B)   wages are unlikely to be affected by job requirements
C)   if the food distribution job has a requirement for special training or certification, this would tend to increase the wage offer
D)   since the food distribution job would expose him to the Ebola virus, the wage is likely to be lowE) A) and D)
F) B) and C)

Question 10

Empirical work that does not correct wages for differences in productivity of workers is likely to:

Accepted Answer

A)   find evidence of wage differentials
B)   be unable to capture evidence of labour market discrimination
C)   misinterpret apparent evidence of labour market discrimination
D)   do all of the aboveE) None of the above
F) B) and D)

Question 11

If there is a wage differential due to discrimination, it will be unlikely to exist for very long in a competitive market for labour because competing firms will demand:

Accepted Answer

A)   more labour from the group of workers that are being discriminated against and there is a cost advantage for the non-discriminating firms
B)   more labour from the group of workers that are being discriminated against and there is a cost advantage for the discriminating firms
C)   less labour from the group of workers that are being discriminated against and there is a cost advantage for the non-discriminating firms
D)   less labour from the group of workers that are being discriminated against and there is a cost advantage for the discriminating firmsE) A) and C)
F) None of the above

Question 12

The statement that 'the rich get richer, and the poor get poorer' is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Accepted Answer

A) True 
 B)False

Question 13

Arts majors are typically told that an arts degree 'does not restrict one's ability to find successful employment in business'. This statement is likely to reflect a philosophy that an arts degree is:

Accepted Answer

A)   a signal of high ability
B)   directly linked to accumulation of human capital
C)   an indication of how education can directly enhance marginal productivity
D)   all of the aboveE) None of the above
F) A) and D)

Question 14

The competitive labour market for barbers is differentiated into two groups, those who are bald (or going bald)  and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently the equilibrium wage in the bald barber market is lower than that in the non-bald market. Further assume that the market for haircuts is competitive.
-Refer to the information provided. Competition in the market for haircuts is consistent with which of the following statements?

Accepted Answer

A)   firms hiring non-bald barbers will have a cost advantage, leading to an increase in the demand for non-bald barbers
B)   firms that hire only bald barbers will eventually all go out of business
C)   all firms must eventually end up with some bald and some non-bald barbers
D)   firms hiring bald barbers will enter the market, increasing the demand for bald barbersE) C) and D)
F) All of the above

Question 15

In a study done by Daniel Hamermesh and Jeff Biddle, physically attractive individuals were found to command a 'beauty premium' in the labour market. Based on your experience with university lecturers, do you think there is likely to be a beauty premium for lecturers? Explain your answer with appropriate examples.

Accepted Answer

At universities where lecturers are eval...

Question 16

In the small town of Hamilton, Tasmania, there is a local hardware store called Eddy's Hardware. Only two types of workers apply for jobs at Eddy's Hardware, cowboys and farmboys. Local politicians have received numerous complaints that Eddy's Hardware is practicing wage discrimination against cowboys. Eddy's Hardware denies the complaint and says they are only trying to maximise profit. There is also a second hardware store in town, named Frank's Hardware, which, unlike Eddy's Hardware, is not facing discriminatory complaints.
-Which of the following statements would weaken the discrimination complaint against Eddy's Hardware?

Accepted Answer

A)   cowboys have little experience with hardware
B)   farmboys have lots of experience with hardware
C)   farmboys are more responsible than cowboys
D)   all of the aboveE) None of the above
F) A) and B)

Question 17

When discrimination occurs as a result of prejudice, market solutions are still viable.

Accepted Answer

A) True 
 B)False

Question 18

The main reason women were paid less than men in the post-war years was due to:

Accepted Answer

A)   cultural biases
B)   efficiency wages
C)   differences in human capital between the men and women
D)   the lack of basic skills among womenE) All of the above
F) A) and D)

Question 19

The neoclassical theory of the labour market suggests that wages are governed by labour supply and labour demand.

Accepted Answer

A) True 
 B)False

Question 20

Economists have proposed which of the following as contributing to the rising wage gap between skilled and unskilled workers?

Accepted Answer

A)   decreasing international trade
B)   technological improvements in capital stocks
C)   the increasing role of unions in setting skilled wage scales
D)   skilled workers are doing jobs that are increasingly dangerousE) C) and D)
F) A) and D)

Exam 20: Earnings, Unions and Discrimination

Correct Answer
verified

Correct Answer
verified
At universities where lecturers are eval...
View Answer

If there is a wage differential due to discrimination, it will be unlikely to exist for very long in a competitive market for labour because competing firms will demand:

Correct Answer
verified

When discrimination occurs as a result of prejudice, market solutions are still viable.

Correct Answer
verified

Given that there are statistical differences in human capital across both age groups and gender, then this is likely to:

Correct Answer
verified

Professional underwater divers are known to have high wages and work an average of only 20 hours a week. The high wages are partly explained by the fact that the job:

Correct Answer
verified

Correct Answer
verified

Empirical analysis of wage differences have found evidence:

Correct Answer
verified

The neoclassical theory of the labour market suggests that wages are governed by labour supply and labour demand.

Correct Answer
verified

When the supply of workers is plentiful, one would predict that market wages would be:

Correct Answer
verified

Economists have proposed which of the following as contributing to the rising wage gap between skilled and unskilled workers?

Correct Answer
verified

One of the problems in calculating the true amount of discrimination that takes place in the market for labour is:

Correct Answer
verified

Arts majors are typically told that an arts degree 'does not restrict one's ability to find successful employment in business'. This statement is likely to reflect a philosophy that an arts degree is:

Correct Answer
verified

Even when the labour market was efficient, wage differentials could still occur.

Correct Answer
verified

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers.

Correct Answer
verified

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for skilled occupations relative to unskilled occupations.

Correct Answer
verified

The statement that 'the rich get richer, and the poor get poorer' is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Correct Answer
verified

The main reason women were paid less than men in the post-war years was due to:

Correct Answer
verified

Correct Answer
verified

Empirical work that does not correct wages for differences in productivity of workers is likely to:

Correct Answer
verified

Exam 20: Earnings, Unions and Discrimination

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAt universities where lecturers are eval...View AnswerShow Answer

If there is a wage differential due to discrimination, it will be unlikely to exist for very long in a competitive market for labour because competing firms will demand:

Correct AnswerverifiedShow Answer

When discrimination occurs as a result of prejudice, market solutions are still viable.

Correct AnswerverifiedShow Answer

Given that there are statistical differences in human capital across both age groups and gender, then this is likely to:

Correct AnswerverifiedShow Answer

Professional underwater divers are known to have high wages and work an average of only 20 hours a week. The high wages are partly explained by the fact that the job:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Empirical analysis of wage differences have found evidence:

Correct AnswerverifiedShow Answer

The neoclassical theory of the labour market suggests that wages are governed by labour supply and labour demand.

Correct AnswerverifiedShow Answer

When the supply of workers is plentiful, one would predict that market wages would be:

Correct AnswerverifiedShow Answer

Economists have proposed which of the following as contributing to the rising wage gap between skilled and unskilled workers?

Correct AnswerverifiedShow Answer

One of the problems in calculating the true amount of discrimination that takes place in the market for labour is:

Correct AnswerverifiedShow Answer

Arts majors are typically told that an arts degree 'does not restrict one's ability to find successful employment in business'. This statement is likely to reflect a philosophy that an arts degree is:

Correct AnswerverifiedShow Answer

Even when the labour market was efficient, wage differentials could still occur.

Correct AnswerverifiedShow Answer

Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers.

Correct AnswerverifiedShow Answer

The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for skilled occupations relative to unskilled occupations.

Correct AnswerverifiedShow Answer

The statement that 'the rich get richer, and the poor get poorer' is supported by evidence of an expanding wage gap between high-skill and low-skill workers.

Correct AnswerverifiedShow Answer

The main reason women were paid less than men in the post-war years was due to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Empirical work that does not correct wages for differences in productivity of workers is likely to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
At universities where lecturers are eval...
View 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
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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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