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1、Chapter 19/Earnings and Discrimination v 1345Chapter 19Earnings and DiscriminationTRUE/FALSE1.A compensating differential refers to a difference in wages that arises from nonmonetary characteristics.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Compensating differentialsMSC:Definitional2.A comp

2、ensating differential is a difference in wages due to higher levels of education or other forms of human capital.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Compensating differentialsMSC:Definitional3.The fact that doctors are paid more than economics professors is an example of a compensatin

3、g differential.ANS:TDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Compensating differentialsMSC:Definitional4.A computer is an example of productivity-enhancing human capital.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capitalMSC:Definitional5.Higher levels of human capital are correlat

4、ed with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capitalMSC:Interpretive6.As a result of an increase in the earnings gap between skilled and unskilled jobs, the i

5、ncentive to get a college education has been declining.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive7.The rising gap in wages between unskilled and skilled workers is most likely related to a larger increase in demand for unskilled occupations relative

6、 to skilled occupations.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive8.One hypothesis to explain the rising gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled

7、 and unskilled workers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive9.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.ANS:TDIF:1REF:1

8、9-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive10.Some economists suggest that international trade has led to an expanding wage gap between high-skill and low-skill workers in the United States.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skil

9、lsMSC:Interpretive11.It is increasingly clear that technological change, rather than international trade, has been largely responsible for an expanding wage gap between high-skill and low-skill workers.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Interpretive12.Th

10、e United States is losing manufacturing jobs to countries like China and India, where manufacturing jobs have increased 30 percent since 1995.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative13.Since 1995, global manufacturing employment has declined, yet g

11、lobal industrial output has risen.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative14.One explanation for the loss in manufacturing jobs is that new technologies have replaced the need for some workers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Incr

12、easing value of skillsMSC:Applicative15.The demand for workers with excellent problem-solving skills is increasing, as are the wages for those workers.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Increasing value of skillsMSC:Applicative16.One reason why better-looking workers may have higher

13、earnings is that physical attractiveness may enhance a workers productivity for certain jobs, especially for those workers who deal with the public.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Beauty premiumMSC:Interpretive17.One reason why better-looking workers may have higher earnings is th

14、at physical attractiveness is correlated with intelligence.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Beauty premiumMSC:Interpretive18.The signaling theory of education maintains that workers who complete specific levels of education signal their high productivity to potential to employers.A

15、NS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:SignalingMSC:Definitional19.The signaling theory of education maintains that workers who complete specific levels of education enhance their productivity through education.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:SignalingMSC:Definitional20

16、.If the signaling theory of education is correct, then education is correlated with higher earnings because people with higher levels of education are more productive.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:SignalingMSC:Interpretive21.The human-capital theory of education maintains that w

17、orkers who complete specific levels of education enhance their productivity through education.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Human capital | SignalingMSC:Definitional22.Education and on-the-job training are sources of human capital.ANS:TDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsT

18、OP:Human capitalMSC:Applicative23.The superstar phenomenon explains why professional athletes earn more than amateur athletes.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Superstar phenomenonMSC:Definitional24.Superstars earn high incomes due to their ability to satisfy the demands of millions

19、 of people at once.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:SuperstarsMSC:Interpretive25.An effective minimum wage law will increase the quantity of labor demanded.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Above-equilibrium wagesMSC:Applicative26.Labor unions will raise the quanti

20、ty of labor demanded.ANS:FDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:UnionsMSC:Applicative27.Efficiency wages will raise the quantity of labor supplied to the market.ANS:TDIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:Efficiency wagesMSC:Applicative28.Efficiency wages decrease employee effort.ANS:

21、FDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Above-equilibrium wagesMSC:Interpretive29.Efficiency wages decrease employee turnover.ANS:TDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Above-equilibrium wagesMSC:Interpretive30.Economic theory of labor markets suggests that wages are governed by labor

22、 supply and labor demand.ANS:TDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Applicative31.Empirical evidence suggests that ability, effort, and chance are not likely to be significant contributors to wage differences.ANS:FDIF:1REF:19-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Interpretive32

23、.Discrimination is a reflection of some people's prejudice against certain groups in society.ANS:TDIF:1REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Definitional33.Differences in human capital among groups of workers is possibly a reflection of past discrimination.ANS:TDIF:1REF:19-2

24、NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive34.Discrimination is an emotionally charged issue that is impossible to study objectively.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive35.When differences in human capital among workers lead to discrim

25、ination, the differences are typically a result of social or political processes rather than economic processes.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive36.When comparing average wages for black and white workers in the United States, wages paid to black worke

26、rs have been about 20 percent less than those paid to white workers.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Applicative37.When comparing average wages for male and female workers in the United States, wages paid to females have been about 40 percent less tha

27、n those paid to male workers.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Applicative38.Politicians often point to average wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this ap

28、proach because they don't trust any of the statistics quoted by the politicians.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive39.Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and

29、women; however, economists argue against this approach because people differ in the kinds of work they are willing and able to do.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive40.Economists would argue that the gender wage gap is narrowing because of e

30、fficiency wages.ANS:FDIF:2REF:19-2 | 19-1NAT:AnalyticLOC:Labor marketsTOP:Labor-market discrimination | Efficiency wagesMSC:Interpretive41.All differences in wages that are not accounted for by differences in human-capital investment are likely to be a result of discrimination.ANS:FDIF:2REF:19-2NAT:

31、AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive42.In a labor market free from discrimination, wages for workers that are employed by the same company will still differ.ANS:TDIF:2REF:19-2 | 19-1NAT:AnalyticLOC:Labor marketsTOP:Labor-market discrimination | Human capitalMSC:In

32、terpretive43.Evidence of discrimination is most apparent when one compares wages among broad groups.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive44.When discrimination occurs as a result of prejudice, firms do not maximize profits.ANS:TDIF:2REF:19-2NA

33、T:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive45.Consumers are often a primary source of discrimination in labor markets.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive46.Discrimination is usually not a profit-maximizing stra

34、tegy.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive47.One example of labor-market discrimination is that firms may be less likely to interview job-market candidates whose names suggest that they are members of a racial minority.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Lab

35、or marketsTOP:Labor-market discriminationMSC:Interpretive48.If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes.ANS:FDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive49.Profit-maximizing, competitiv

36、e firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Interpretive50.Streetcar owners in the early 20t

37、h century were against segregation for profit maximizing reasons.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:DiscriminationMSC:Interpretive51.Experimental evidence indicates women choose less competitive environments than men.ANS:TDIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Gender differenc

38、esMSC:InterpretiveSHORT ANSWER1.After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn't provide the highest level of monetary compensation? Use the c

39、oncept of compensating differentials to explain your answer.ANS:Compensating differentials refer to differences in job characteristics across different occupations. But compensating differentials can also lead to differences in job characteristics within an occupation. Such considerations may includ

40、e geographic location and quality-of-life issues associated with a particular job offer. Thus, it is not irrational to consider nonmonetary compensation.DIF:2REF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Compensating differentialsMSC:Analytical2.The National Collegiate Athletic Association (NCAA) has l

41、ong argued that nationally-prominent college athletes are compensated with an investment in human capital that far exceeds the monetary reward of playing professional sports. Examine this argument in light of your knowledge of human capital theory and the economic theory of labor markets.ANS:Many ec

42、onomists would argue that the NCAA is the most exploitative organization in the United States, considering the value that star student athletes contribute to a university. Most would argue that the education that star student athletes receive is of less value than what the athletes contribute.DIF:2R

43、EF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Human capitalMSC:Analytical3.A recent study of the determinants of wages for clerical staff at a state university found that years of schooling, years of experience, age and job characteristics only explained about one-half of the difference in wages. Descri

44、be other factors that may be important in explaining wages differences for clerical staff.ANS:Other factors may include gender, job tenure, and job responsibilities, ability and effort.DIF:2REF:19-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Analytical4.Explain the theory that education acts as a sign

45、aling device. How does this contrast with the theory of education as an investment in human capital?ANS:The theory of signaling suggests that those who have desirable "productivity" characteristics are more likely to finish educational programs. The human capital theory suggests that produ

46、ctivity characteristics are enhanced by the learning that takes place in formal educational programs.DIF:2REF:19-1NAT:ReflectiveLOC:Labor marketsTOP:Human capital | SignalingMSC:Definitional5.List the productivity factors that may explain the differences in pay between men and women in similar occup

47、ations. 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.ANS:Job experience, education, lifetime patterns of work experience, etc. The gap should narrow as the cultural and social barrier

48、s to female access to productivity-enhancing experiences are reduced.DIF:2REF:19-2NAT:ReflectiveLOC:Labor marketsTOP:Labor-market discriminationMSC:Analytical6.Explain the role of job experience in explaining the differences between the average wages of men and women.ANS:Women, who have primary resp

49、onsibility for housework and child-rearing duties, typically have less continuity in the labor force. As such, there is a difference in the average years of job experience between men and women.DIF:2REF:19-2NAT:AnalyticLOC:Labor marketsTOP:Labor-market discriminationMSC:Analytical7.Explain how compe

50、nsating differentials could contribute to differences between the average wages of men and women.ANS:Men and women may, on average, select different career paths. If men tend to be more concentrated in jobs that have less desirable working conditions, then compensating differentials can explain some

51、 of the difference in wages between men and women.DIF:2REF:19-2 | 19-1NAT:AnalyticLOC:Labor marketsTOP:Labor-market discrimination | Compensating differentialsMSC:Applicative8.Evaluate the following statement: "The gender pay gap provides evidence of widespread, severe, ongoing discrimination b

52、y employers and fellow workers."ANS:There are many explanations of the gender pay gap. Some are associated with discrimination both by consumers and employers. Others are not associated with discrimination. Examples of factors that would explain why men earn more than women, on average, but tha

53、t are not associated with discrimination include years of labor-market experience, types of jobs, levels of human capital, and on-the-job training.DIF:2REF:19-2NAT:ReflectiveLOC:Labor marketsTOP:Labor-market discriminationMSC:Analytical9.In a recent U.S. presidential campaign, a lobbyist for a promi

54、nent national women's organization made the claim that women in the United States earn $0.60 for every $1.00 earned by a man. A reporter, who was prepared for this statement, asked the lobbyist why wages paid to the organization's secretarial staff (all of whom were women) were significantly

55、 below the national average if they were truly interested in raising the rates of compensation for women. If you were the lobbyist, how would you have answered this question? Do you think your answer is convincing? Explain.ANS:The lobbyist would likely respond by citing factors that explain wage differences on the basis of compensating differentials, education, and job experience. These arguments would be convincing to those who subscribe to the marginal productivity theory of compensation.DIF:2REF:19-2NAT:Re

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