Question 1

The 'beauty premium' can be explained by the fact that:

Accepted Answer

A)   beauty acts as an implicit signal of innate intelligence
B)   beautiful people are likely to reflect 'good breeding'
C)   marginal productivity in all occupations has a physical dimension
D)   in some occupations, physical attractiveness of a worker may enhance the value of their marginal productE) A) and C)
F) B) and C)

Question 2

A binding minimum wage law will decrease the quantity of labour demanded.

Accepted Answer

A) True 
 B)False  True

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) All of the above
F) C) and D)

Question 4

When wage differentials are observed in competitive labour markets, the neoclassical theory of labour markets would predict:

Accepted Answer

A)   market discrimination.
B)   a difference in the value of marginal product of labour
C)   that wages will converge over time
D)   that wage differences reflect social statusE) A) and C)
F) A) and B)

Question 5

Which theory would support the idea that education does not enhance productivity, and raising workers' educational levels would not affect wages?

Accepted Answer

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

Question 6

Politicians often point to wage differentials as evidence of labour market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Accepted Answer

A) True 
 B)False

Question 7

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 8

An increase in safety standards does not directly raise the wage of employees, however a neoclassical analysis of labour markets suggests it will decrease total employment. What mechanism drives this result?

Accepted Answer

A)   an increase in safety standards leads to more people wishing to enter the labour force
B)   higher safety costs decrease the value of the marginal product of labour, leading to a downward shift in demand
C)   higher safety costs decrease the value of the marginal product of labour, leading to an upward shift in demand
D)   the labour supply curve shifts inwards in response to safer working conditionsE) A) and B)
F) None of the above

Question 9

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 10

Students who are required to finish more schooling have been found to:

Accepted Answer

A)   be happier with their career choices
B)   be more likely to feel the effects of minimum wage increases
C)   suffer from unemployment volatility
D)   earn a higher wageE) All of the above
F) A) and D)

Question 11

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

Accepted Answer

A)   male workers are compensated for attending university, while female workers generally are not
B)   female workers are compensated for attending university, while male workers generally are not
C)   neither gender receives a higher wage for attending university
D)   both genders receive a higher wage for attending universityE) None of the above
F) A) and B)

Question 12

Which of the following theories suggests that education makes workers more productive and therefore able to earn a higher wage?

Accepted Answer

A)   human capital theory
B)   signalling theory
C)   the theory of compensating differentials
D)   cost allocation theoryE) B) and D)
F) B) and C)

Question 13

Given a community worker for the Red Cross gets paid less money than a professional soccer player, this means that:

Accepted Answer

A)   a soccer player is valued more by society than a community worker
B)   labour markets are generally inefficient and inequitable
C)   a soccer player generates more revenue in the economy than a community worker
D)   none of the above are trueE) None of the above
F) B) and D)

Question 14

If education is a signalling device for high ability, employers will offer higher wages to educated workers.

Accepted Answer

A) True 
 B)False  True

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Explain the role of compensating differentials in explaining the difference between the average wages of men and women.

Accepted Answer

Men and women have traditionally selecte...

Question 17

Efficiency wages that create above-equilibrium wages will most likely result in which of the following:

Accepted Answer

A)   a shortage of labour and decreased unemployment of labour
B)   a shortage of labour and increased unemployment of labour
C)   a surplus of labour and decreased unemployment of labour
D)   a surplus of labour and increased unemployment of labourE) C) and D)
F) B) and D) D

Question 18

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 B)
F) A) and C)

Question 19

Suppose the apple pickers of Australia successfully form a union with 100% membership and negotiate a wage rise of 20 per cent. If the market demand for apple pickers is downward sloping this will result in:

Accepted Answer

A)   greater employment in the apple picking industry
B)   no change in employment in the apple picking industry
C)   a shift in the supply curve of apple pickers
D)   the price of apples to fallE) A) and B)
F) B) and C)

Question 20

A union's major source of power is its:

Accepted Answer

A)   charismatic and experienced leader
B)   ability to withhold labour
C)   ability to bargain for shorter working weeks
D)   ability to shift the demand curve for labour to the rightE) A) and B)
F) None of the above

Exam 20: Earnings and Discrimination

The 'beauty premium' can be explained by the fact that:

Correct Answer
verified

A binding minimum wage law will decrease the quantity of labour demanded.

Correct Answer
verified
True

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

Correct Answer
verified

When wage differentials are observed in competitive labour markets, the neoclassical theory of labour markets would predict:

Correct Answer
verified

Which theory would support the idea that education does not enhance productivity, and raising workers' educational levels would not affect wages?

Correct Answer
verified

Politicians often point to wage differentials as evidence of labour market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Correct Answer
verified

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

An increase in safety standards does not directly raise the wage of employees, however a neoclassical analysis of labour markets suggests it will decrease total employment. What mechanism drives this result?

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

Students who are required to finish more schooling have been found to:

Correct Answer
verified

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

Correct Answer
verified

Which of the following theories suggests that education makes workers more productive and therefore able to earn a higher wage?

Correct Answer
verified

Given a community worker for the Red Cross gets paid less money than a professional soccer player, this means that:

Correct Answer
verified

If education is a signalling device for high ability, employers will offer higher wages to educated workers.

Correct Answer
verified
True

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

Correct Answer
verified

Explain the role of compensating differentials in explaining the difference between the average wages of men and women.

Correct Answer
verified
Men and women have traditionally selecte...
View Answer

Efficiency wages that create above-equilibrium wages will most likely result in which of the following:

Correct Answer
verified
D

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

Correct Answer
verified

Suppose the apple pickers of Australia successfully form a union with 100% membership and negotiate a wage rise of 20 per cent. If the market demand for apple pickers is downward sloping this will result in:

Correct Answer
verified

A union's major source of power is its:

Correct Answer
verified

Exam 20: Earnings and Discrimination

The 'beauty premium' can be explained by the fact that:

Correct AnswerverifiedShow Answer

A binding minimum wage law will decrease the quantity of labour demanded.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

When wage differentials are observed in competitive labour markets, the neoclassical theory of labour markets would predict:

Correct AnswerverifiedShow Answer

Which theory would support the idea that education does not enhance productivity, and raising workers' educational levels would not affect wages?

Correct AnswerverifiedShow Answer

Politicians often point to wage differentials as evidence of labour market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the kinds of work they are willing and able to do.

Correct AnswerverifiedShow Answer

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

An increase in safety standards does not directly raise the wage of employees, however a neoclassical analysis of labour markets suggests it will decrease total employment. What mechanism drives this result?

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

Students who are required to finish more schooling have been found to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following theories suggests that education makes workers more productive and therefore able to earn a higher wage?

Correct AnswerverifiedShow Answer

Given a community worker for the Red Cross gets paid less money than a professional soccer player, this means that:

Correct AnswerverifiedShow Answer

If education is a signalling device for high ability, employers will offer higher wages to educated workers.

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Explain the role of compensating differentials in explaining the difference between the average wages of men and women.

Correct AnswerverifiedMen and women have traditionally selecte...View AnswerShow Answer

Efficiency wages that create above-equilibrium wages will most likely result in which of the following:

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

Suppose the apple pickers of Australia successfully form a union with 100% membership and negotiate a wage rise of 20 per cent. If the market demand for apple pickers is downward sloping this will result in:

Correct AnswerverifiedShow Answer

A union's major source of power is its:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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
True

Correct Answer
verified

Correct Answer
verified
Men and women have traditionally selecte...
View Answer

Correct Answer
verified
D

Correct Answer
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Correct Answer
verified

Correct Answer
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