Question 1

The 'beauty premium' can be explained by the fact that in some occupations, physical attractiveness of a worker may enhance the value of their marginal product.

Accepted Answer

A) True 
 B)False

Question 2

As more and more companies rely on computer databases and less on filing cabinets, which of the following is likely to occur? (i)  the demand for computer programmers will rise
(ii)  the demand for filing clerks will fall
(iii)  the wage paid to computer clerks will rise

Accepted Answer

A)   (i)  and (ii) 
B)   (ii)  and (iii) 
C)   (i)  and (iii) 
D)   (i) , (ii)  and (iii) E) B) and C)
F) A) and D)

Question 3

According to the signalling view, education:

Accepted Answer

A)   signals natural ability
B)   signals risk-taking attributes
C)   enhances productivity
D)   is an investmentE) A) and B)
F) None of the above

Question 4

Which of these theories would support the idea that increasing educational levels for all workers would raise all workers' productivity and thereby their wage?

Accepted Answer

A)   human capital theory
B)   signalling theory
C)   the theory of compensating differentials
D)   the efficient market hypothesisE) A) and B)
F) A) and C)

Question 5

Taxi drivers in large cities are likely to earn more than taxi drivers in rural areas. One reason for this wage differential could be that:

Accepted Answer

A)   driving in large cities is more fun than driving in rural areas
B)   driving in a large city is easier than driving in a rural area
C)   it is unlikely that a taxi driver in a large city will be involved in a traffic accident that involves farm animals
D)   driving a taxi in a large city is more dangerous than driving in a rural areaE) None of the above
F) B) and D)

Question 6

Economists who are critical of comparable worth proposals are likely to argue which of the following? (i)  the competitive market is the best mechanism for setting wages
(ii)  a gender wage gap is not by itself evidence of discrimination
(iii)  implementation of a comparable worth program would have many of the same effects as minimum wage legislation

Accepted Answer

A)   (i)  and (ii)  only
B)   (ii)  and (iii)  only
C)   (i)  and (iii)  only
D)   (i) , (ii)  and (iii) E) B) and C)
F) A) and C)

Question 7

A signalling theory of education suggests that educational attainment is correlated with:

Accepted Answer

A)   natural ability
B)   increasing wage gaps
C)   marginal productivity
D)   decreasing wage gapsE) None of the above
F) A) and B)

Question 8

Which of the following theories would suggest that attending school does not improve productivity, but that high-ability people are more likely to stay in school?

Accepted Answer

A)   human capital theory
B)   signalling theory
C)   the theory of compensating differential
D)   the efficient market hypothesisE) All of the above
F) A) and C)

Question 9

The neoclassical theory of labour predicts that when competitive labour markets are in equilibrium:

Accepted Answer

A)   workers are paid the value of their marginal contribution to the economy
B)   the wage rate will be the same for all workers
C)   the distribution of wages across the economy will be bell-shaped
D)   all of the above are trueE) All of the above
F) B) and C)

Question 10

Wage differentials are often caused by differences in education, experience and the willingness to take on dangerous or unpleasant tasks by workers.

Accepted Answer

A) True 
 B)False

Question 11

What is the definition of a union?

Accepted Answer

A)   a group of employers whose goal is to keep wages above equilibrium levels
B)   a group of employers whose goal is to keep wages below equilibrium levels
C)   a group of employees whose goal is to keep wages above equilibrium levels
D)   a group of employees whose goal is to keep wages below equilibrium levelsE) A) and B)
F) A) and C)

Question 12

Discrimination is a reflection of some people's prejudice against certain groups in society.

Accepted Answer

A) True 
 B)False

Question 13

Even if markets are competitive, discriminatory hiring practices can persist because of:

Accepted Answer

A)   payroll taxes
B)   the lower costs of hiring of workers discriminated against
C)   customer preferences
D)   minimum wages that are set below the market equilibrium wageE) A) and C)
F) B) and C)

Question 14

Advocates of comparable worth claim that:

Accepted Answer

A)   men are typically paid less than women for identical work
B)   the existence of a gender gap in wage rates is evidence of discrimination
C)   occupations are not gender specific
D)   all of the above are trueE) None of the above
F) B) and D)

Question 15

Differences in human capital among groups of workers is possibly a reflection of discrimination.

Accepted Answer

A) True 
 B)False

Question 16

Comparable worth In response to the gender gap, some states and countries have experimented with comparable worth regulations. This tries to close the wage gap by requiring employers to pay people doing jobs of comparable worth the same income. Hence, if firemen get paid more than librarians, but regulators deem that the jobs are of comparable wealth, then wages of librarians would have to rise to match firemen.
Advocates of comparable worth policies believe that compensating differentials do not explain differences in wages of men and women.
One potential critique this principle of comparable worth is that:

Accepted Answer

A)   workers are seldom discriminated against
B)   wage differences are unlikely to reflect differences in training or work experience
C)   if non-monetary aspects of a job are difficult to measure, establishing comparable worth will be harder
D)   wage differences are unlikely to reflect differences in risk or difficultyE) B) and D)
F) None of the above

Question 17

When a worker is deciding whether to take a job or not:

Accepted Answer

A)   the wage is believed by economists to be the only determining factor
B)   the worker may consider the inherent danger involved in the given job
C)   the worker may consider whether the job is exciting
D)   both B and C are correctE) All of the above
F) A) and D)

Question 18

Human capital is the accumulation of investments in people. The most important type of human capital is education.

Accepted Answer

A) True 
 B)False

Question 19

Natural ability is another reason why some people can earn more than others doing the same job.

Accepted Answer

A) True 
 B)False

Question 20

What is the signalling theory of education?

Accepted Answer

This theory claims that rather than educ...

Exam 20: Earnings, Unions and Discrimination

According to the signalling view, education:

Correct Answer
verified

Wage differentials are often caused by differences in education, experience and the willingness to take on dangerous or unpleasant tasks by workers.

Correct Answer
verified

A signalling theory of education suggests that educational attainment is correlated with:

Correct Answer
verified

What is the definition of a union?

Correct Answer
verified

Discrimination is a reflection of some people's prejudice against certain groups in society.

Correct Answer
verified

Natural ability is another reason why some people can earn more than others doing the same job.

Correct Answer
verified

Advocates of comparable worth claim that:

Correct Answer
verified

Differences in human capital among groups of workers is possibly a reflection of discrimination.

Correct Answer
verified

The neoclassical theory of labour predicts that when competitive labour markets are in equilibrium:

Correct Answer
verified

Even if markets are competitive, discriminatory hiring practices can persist because of:

Correct Answer
verified

The 'beauty premium' can be explained by the fact that in some occupations, physical attractiveness of a worker may enhance the value of their marginal product.

Correct Answer
verified

Which of the following theories would suggest that attending school does not improve productivity, but that high-ability people are more likely to stay in school?

Correct Answer
verified

Which of these theories would support the idea that increasing educational levels for all workers would raise all workers' productivity and thereby their wage?

Correct Answer
verified

When a worker is deciding whether to take a job or not:

Correct Answer
verified

What is the signalling theory of education?

Correct Answer
verified
This theory claims that rather than educ...
View Answer

Correct Answer
verified

Human capital is the accumulation of investments in people. The most important type of human capital is education.

Correct Answer
verified

As more and more companies rely on computer databases and less on filing cabinets, which of the following is likely to occur? (i) the demand for computer programmers will rise (ii) the demand for filing clerks will fall (iii) the wage paid to computer clerks will rise

Correct Answer
verified

Correct Answer
verified

Taxi drivers in large cities are likely to earn more than taxi drivers in rural areas. One reason for this wage differential could be that:

Correct Answer
verified

Exam 20: Earnings, Unions and Discrimination

According to the signalling view, education:

Correct AnswerverifiedShow Answer

Wage differentials are often caused by differences in education, experience and the willingness to take on dangerous or unpleasant tasks by workers.

Correct AnswerverifiedShow Answer

A signalling theory of education suggests that educational attainment is correlated with:

Correct AnswerverifiedShow Answer

What is the definition of a union?

Correct AnswerverifiedShow Answer

Discrimination is a reflection of some people's prejudice against certain groups in society.

Correct AnswerverifiedShow Answer

Natural ability is another reason why some people can earn more than others doing the same job.

Correct AnswerverifiedShow Answer

Advocates of comparable worth claim that:

Correct AnswerverifiedShow Answer

Differences in human capital among groups of workers is possibly a reflection of discrimination.

Correct AnswerverifiedShow Answer

The neoclassical theory of labour predicts that when competitive labour markets are in equilibrium:

Correct AnswerverifiedShow Answer

Even if markets are competitive, discriminatory hiring practices can persist because of:

Correct AnswerverifiedShow Answer

The 'beauty premium' can be explained by the fact that in some occupations, physical attractiveness of a worker may enhance the value of their marginal product.

Correct AnswerverifiedShow Answer

Which of the following theories would suggest that attending school does not improve productivity, but that high-ability people are more likely to stay in school?

Correct AnswerverifiedShow Answer

Which of these theories would support the idea that increasing educational levels for all workers would raise all workers' productivity and thereby their wage?

Correct AnswerverifiedShow Answer

When a worker is deciding whether to take a job or not:

Correct AnswerverifiedShow Answer

What is the signalling theory of education?

Correct AnswerverifiedThis theory claims that rather than educ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Human capital is the accumulation of investments in people. The most important type of human capital is education.

Correct AnswerverifiedShow Answer

As more and more companies rely on computer databases and less on filing cabinets, which of the following is likely to occur? (i) the demand for computer programmers will rise (ii) the demand for filing clerks will fall (iii) the wage paid to computer clerks will rise

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Taxi drivers in large cities are likely to earn more than taxi drivers in rural areas. One reason for this wage differential could be that:

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This theory claims that rather than educ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified